Renewable heat scheme to reduce emissions

Businesses in the UK are now able to apply for heat tariff payments, which energy and climate change minister Greg Barker says “will usher in a new era in clean green heat technology“.

The world’s first Renewable Heat Incentive (RHI) opened to applicants on Monday November 28th. The scheme provides payments for heat generated from renewable technologies including biomass boilers, solar thermal equipment and heat pumps.

The RHI is set to play a key role in the UK meeting its 2020 renewables target. It aims to help the UK reduce its dependence on fossil fuels and cut emissions by 43 million tonnes of carbon.

Barker said, “It’s a world first and has the potential to put the UK at the forefront of a vibrant new green technology sector.

“Renewable heat will be a big win for our economy – it will support thousands of green jobs, reduce our dependency on imported fossil fuels, reduce our carbon emissions and help us meet our renewable target.”

When the idea was first talked about by the Department of Energy and Climate Change (DECC) in March 2011, Chris Huhne said, “Renewable heat is a largely untapped resource and an important new green industry of the future”.

The idea was delayed just hours before it was supposed to be originally launched because it did not stick to European Union state aid rules. The scheme was then given approval in October after some changes had been made.

The DECC says that businesses that sign up in the early stages should expect to see payment in the first quarter of 2012. Support for households wanting to take part is planned for the second phase of the RHI and it will be confirmed at the start of next year.

Under the scheme, payments will be received for every kilowatt-hour of heat produced. The support will continue for 20 years for any technologies that have been installed since July 15th 2009.

If you would like to know more about the RHI then visit Ofgem. If you are interested in other renewable energy schemes and ideas then visit Good Energy. If you are interested in investing in renewable energy companies then speak to your IFA, if you have one, or complete our online form and we will connect you with an ethical IFA.