On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used.
This is the first financial support scheme for renewable heat of its kind in the world. At a time when we can see many problems with relying on a rapidly changing world and continuous reliance on oil and gas, we are proposing to put in place a key foundation stone of our energy future where both carbon reduction and energy security are assured.
The Renewable Heat Incentive(RHI) policy document, sets out the detailed arrangements for this scheme, which will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat.
We are aiming for the regulations underpinning this scheme to be approved by Parliament in 2011.
The scheme will be introduced shortly thereafter. Scheme details The scheme will be introduced in two phases.
In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions.
Under this phase there will also be support of around £15 million for households through the Renewable Heat Premium Payment.
The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households.
This transition will be timed to align with the Green Deal, which is intended to be introduced in October 2012. If you require any further information please call our energy team on 0161 627 5144.