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World's first Renewable Heat Incentive launched to reduce emissions - 10 March 2011

Posted by Cathy Debenham on 10 March 2011 at 10:20 am

The detail of the much anticipated renewable heat incentive has just been announced by Chris Huhne, the energy and climate change secretary. This is the summary from the DECC website. Full detail and analysis will follow later.

  • £860m government scheme expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat;
  • Incentive to increase number of industrial, commercial and public sector installations by seven times to 2020
  • A full system of RHI payments will be available to households from October 2012
  • In the interim, more than a quarter of the first year’s budget to be guaranteed for up to 25,000 household installations through a “RHI Premium Payment” to encourage take-up;
  • 150,000 existing manufacturing, supply chain and installer jobs to be supported

The Renewable Heat Incentive (RHI) will support emerging technologies and businesses in the UK, strengthening security of supply by reducing dependence on fossil fuel heating and emissions.

Energy and Climate Change Secretary Chris Huhne said:

“Renewable heat is a largely untapped resource and an important new green industry of the future.

"This incentive is the first of its kind in the world. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”


If you have a question about anything in the above blog, please ask it in the comments section below.

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5 comments - read them below or add one

Kensa Heat Pumps

Kensa Heat PumpsComment left on: 14 March 2011 at 10:38 am

DECC have simply stalled the market, yet again. With no details of the tariffs or eligibility of the scheme for domestic users announced, people are simply going to wait. 

They have also classed Social Housing Schemes as domestic, so any project helping to get tenants out of fuel poverty by installing renewable heat technology is on hold until further details are released. 

We have already seen companies going to the wall due to the lack of information coming from DECC, for example Earth Energy, how many more?

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EnergyMyWayComment left on: 10 March 2011 at 7:15 pm

The announcement doesn't really give much away about how it's going to work this year but at least they haven't scrapped it and the air source and biomass installations we've done to date will be eligible for future RHI payments.

Roll on May for the next installment - talk about drip feeding the information.

James - 

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Philip James

Philip JamesComment left on: 10 March 2011 at 12:00 pm

Looks like our company of MCS Biomass installers may as well shut up shop then... 

The domestic market is now going to be totally on hold until July 2011 when the RHI Premium Payments start

How is my company supposed to survive for 4 months ?
because nobody is going to want an installation before then...

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Fred1Comment left on: 10 March 2011 at 11:51 am

Long awaited announcement, consultation closed 11 months ago.

Looks like it its too hard to incentivise the public, looks like DECC are leaving this one for the big boys.......


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JTec Energy PerformanceComment left on: 10 March 2011 at 10:54 am

Rats! they won't be giving details of the domestic tariffs for a while yet.. "We plan to publish details of the “RHI Premium Payment” and how this will apply in May this year. We will consult on the RHI tariffs that will apply from October 2012 later in the year."

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