The Government's Renewable Heat Incentive proposals - April 1, 2011

The government has also published today detailed consultation proposals for a Renewable Heat Incentive (RHI) which will incentivise renewable heat generation at all scales (small, medium and large.)

Due to start in April 2011, the RHI will guarantee payments for those who install ground source heat pumps, air source heat pumps, biomass boilers and solar thermal.

Government hopes the RHI will lead to a rapid rise in the number of homes and offices heated by heat pumps, woodfuel, biogas, solar thermal and waste-to-energy technologies.

The RHI guarantees that the average household will be paid more than £1,000 for the renewable heat they generate themselves. It offers long-term, fixed payments based on the type of installation. There will be payments also for every unit of renewable gas fed into the gas network.

Currently, renewable heat technologies meet just 0.6% of UK heat demand, but by 2020 the government aims to meet 12% or more of the UK's heat demand through renewables.

REA policy director Gaynor Hartnell said: "The UK may be languishing behind the rest of Europe on renewable heat, but the proposals launched today are an important world first. The industry is confident these proposals give the UK pretty much the best chance of generating over 10% of its heat from renewables by 2020."

The consultation on the proposed Renewable Heat Incentive financial support scheme opens on February 1, 2010 and the deadline for responses is April 26. Of course, ESP will be submitting it's views and you are very welcome to contribute to our submission by telling us what you think about the new scheme.