Renewable Heat Incentive (R.H.I)
The heat used in our homes, public buildings, businesses and factories is responsible for around half of all the energy consumed in the UK, and accounts for roughly half of all the UK’s carbon emissions. The UK government is aiming for 12% of the UK's heat demand to be satisfied from renewable sources by 2020, a major increase from the current level of 1.5%.
The Department of Energy & Climate Change has now announced details of the Renewable Heat Incentive (RHI), the first financial support scheme for Renewable Heat of its kind in the world. A scheme which will reward the production of renewable heat, and mitigate the financial barrier to renewable heat use.
Phase 1
On the 10th March 2011, DECC announced the first phase of the renewable heat incentive, a long-term tariff scheme payable from September 2011 to the large commercial energy users of the non-domestic sector.
Under this phase of the system there will also be around £15 million of financial support for domestic renewable heat installations, in the form of an RHI premium payment to assist in the capital purchase of the equipment.
The full domestic RHI is anticipated to come into force in October 2012 to coincide with the Green Deal.
