UK Coalition Goes Green With The New Renewable Heat Incentive.

Friday 11 March 2011

The Coalition Government spending review has rarely been out of the news since the country entered into this review in October 2010. But March 10th 2011 is a day of positive news for anyone considering Renewable Heat and companies in the Renewable Heating industry. Energy Secretary Chris Huhne has finally announced the first stage of the Renewable Heat Incentive or RHI.

The Government has indicated its intention to be the leader of the first world nations in green policy making by continuing with the Renewable Heat Incentive proposals introduced by the Labour Party. March 2011 is a stepping stone in the start up of this new RHI scheme. The big news from the Department of Energy and Climate Change (DECC) statement is how this new policy will be placed into action by the new Government. The key points in this press release are:

  • It is a positive step to reduce the carbon footprint of the UK by cutting the use of Fossil fuels to heat the nation’s homes and businesses, reducing 44 million tones of CO2 emissions by 2020.
  • The policy will stimulate the growth of businesses within the Renewable Energy sector, creating jobs for the future.

The first to benefit from the new RHI scheme will be Business and public sector organisations with RHI tariffs due to start in July 2011. The homeowners Renewable Heat Incentive will commence in October 2012.

Homeowners will have to wait for further information to the released later this year as to what Return on Investment they can expect to receive from heat produced by their own systems. However, in the meantime there is a stop gap incentive being created for a limited time only which will be know as the RHI Premium Payment. This is effectively a Government grant that will aid homeowners in the purchase of their own Renewable Heat generation system.

DECC have indicated that there will be a £15M budget available for the RHI Premium Payment which equates to approximately 25,000 systems. To put this into context, if you wish to purchase a Solar Thermal system you will be able to receive up to £300 toward the cost.

More news is to follow but this is a positive step by the Government to show its commitment to a greener planet.

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