UK government launches Renewable Heat Incentive

The new financial incentive is expected to encourage the widespread installation of equipment such as renewable heat pumps, biomass boilers and solar thermal panels in domestic and commercial premises.

According to the Department of Energy and Climate Change (DECC), around half of the UK’s carbon emissions come from the energy used to produce heat. The RHI will reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations.

‘Renewable heat is a largely untapped resource and an important new green industry of the future,’ said energy and climate change secretary Chris Huhne. ‘This incentive is the first of its kind in the world. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.’

The RHI tariff scheme will stand alongside the Renewables Obligation and Feed-In Tariff scheme.

For industry, commercial and public-sector installations the tariffs will be paid for 20 years to eligible technologies that have been installed since 15 July 2009, with payments being made for each kWh of renewable heat that is produced.