RHI
What is the Renewable Heat Incentive?
The Renewable Heat Incentive (RHI) scheme is the first of its kind in the world. It will provide long term support for renewable heat technologies, from ground-source heat pumps to wood-chip boilers.
The scheme will help drive around a seven-fold increase in renewable heat over the coming decade, which will help shift what currently is a fringe option, firmly into the mainstream.
The scheme will make payments to those installing renewable heat technologies that qualify for support, year on year, for a fixed period of time. It is designed to cover the difference in cost between conventional fossil fuel heating and renewable heating systems (which are currently more expensive), plus an additional rate of return on top.
Why heat?
Heat production is responsible for around half (49%) of the final energy demand consumed in the UK and roughly half of all UK’s carbon emissions. Taking action now to switch from fossil fuels to cleaner and more sustainable green sources of energy will reduce the impact that our heat requirements have on the environment and help ensure the UK has an energy supply that is safe, secure and reliable.
The UK Government remain committed to the ambition of moving from 1% to 12% of all heat generated from a renewable source by 2020. This will require all aspects of society to play their part – householders, communities, public, commercial and industrial sectors.
When will the scheme start?
The RHI will be delivered in two phases and start following approval by Parliament in summer 2011.
In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users - the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions.
Under this phase there will also be support of around £15 million for households through the Renewable Heat Premium Payment.
The second phase of the RHI scheme will see households moved to the same form of long-term tariff support offered to the non-domestic sector in the first phase. This transition will be timed to align with the Green Deal which is intended to be introduced in October 2012.
Renewable Heat Incentive Premium Payment
Details of this scheme will be released in May but the likely levels of support for RHI Premium Payments are as follows:
Ground Source Heat Pumps - £1250/unit
Air Source Heat Pumps - £850/unit
Solar Thermal - £300/unit
Vent Axia's range of heat pumps are MCS accredited and will be eligible for the RHI, we would welcome the chance to assist with your project.
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