Renewable Heat Incentive (RHI) in the UK
July 27, 2010
To meet the 2020 Renewable Energy target of 15%, the Department of Energy and Climate Change (DECC) needs to develop new ways of generating renewable energy in all sectors, including heating. Heat generated from renewable sources currently accounts for approximately 1% of Total Heat demand . this may need to rise to 12% to hit the UK's binding EU targets.
The Renewable Heat Incentive (RHI) offers financial assistance to enable more people to afford Renewable Heating and, by expanding the market, will help bring costs down more quickly.
Eligible Renewable Heating technologies include: Air and Ground Source Heat Pumps, Biomass Boilers, Solar Thermal Water Heaters and Combined Heat and Power (CHP) Plants which use renewable fuels.
The Renewable Heat Incentive supports heating at all levels / scales, including households, businesses, offices, public sector buildings and industrial processes in large factories.
Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems at all scales, with additional compensation for certain technologies for an element of the non-financial cost and a rate of return of 12% on the additional cost of renewables, with 6% for solar thermal.
While the DECC is aiming to launch the RHI Scheme in April 2011, renewable heating installations carried out as of July 15th 2009 are also eligible for RHI.
To find out more, or to view the Table of Tariffs for the Renewable Heat Incentive Scheme, please click on the Grants Tab off the Home Page.