Renewable Heat Incentive opens

Renewable Heat Incentive opens Print E-mail

 

The world’s first Renewable Heat Incentive (RHI) is now open to applicants, providing payments for heat generated from renewable technologies including anaerobic digesters 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. Biomethane injection of all scales and biogas combustion under 200 kWth in size will receive 6.8p per kWh for the lifetime of the tariff, which is 20 years.  

Energy and 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 RHI has a key role to play in meeting the UK’s 2020 renewables target, will help reduce the UK’s dependence on expensive imported fossil fuels and will cut emissions by 43 million tonnes of carbon by 2020 - equivalent to the annual carbon emitted by 19 typical new gas power stations.  Up to 500,000 jobs are expected to be created in the renewables industry as a whole by the end of the decade.

The start of the scheme follows a short delay while DECC resolved the scheme’s compatibility with EU state aid rules.  Organisations will be able to apply to Ofgem for support under the scheme from today (Monday 28 November) and will receive payments on a quarterly basis for heat generated over 20 years. 

For more information please visit the Department of Energy and Climate Change RHI web page www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/incentive/incentive.aspx.