Renewable Heat Incentive to finally launch next week

Businesses will be able to apply for heat tariff payments under the Renewable Heat Incentive (RHI) from Monday next week (November 28), DECC has announced.

The RHI will offer payments for heat generated from renewable technologies including biomass boilers, solar thermal equipment and heat pumps installed since 15 July 2009. Recipients will be paid up to 7.9p per kWh for biomass boilers, 8.5p per kWh for solar thermal and up to 4.5p per kWh for heat pumps.

The start of the scheme was slightly delayed while DECC resolved the scheme’s compatibility with EU state aid rules. Under the scheme, organisations will be able to apply to Ofgem for support and will receive payments on a quarterly basis for heat generated over 20 years.

Announcing the initiative, Energy & Climate Change Minister Greg Barker said: “The RHI will usher in a new era in clean green heat technology. 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.”

The renewable heat premium payment scheme is already up and running, providing money off renewable heat technologies for householders. There will also be support for householders under the second phase of the RHI, the timing of which will be confirmed early in the new year.

Maxine Perella

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