The first phase of the Renewable Heat Incentive (RHI) will launch on Monday 28th November. This phase will provide support for industrial, commercial public sector, not-for-profit and commercial installations.
The scheme was due for introduction on 1 April 2011, but was delayed following the grant of approval for the scheme by European Commission subject to a reduction in the large biomass tariff from 2.7p per kWh to 1p per kWh (see our update Large Biomass RHI Tariff Slashed). This required a redraft of the Regulations, which were re-submitted to Parliament at the end of October, and passed this week.
The RHI provides continuous financial support for 20 years to any organisation installing a renewable energy heating system to encourage the uptake of renewable energy. Support will only be available for heat from "renewable sources" as defined in the Renewable Energy Directive. For an overview of the RHI scheme see our update Government Lights a Fire Under Renewable Heat from March 2011.
The RHI scheme aims to increase the level of renewable heat generated in the UK in order to reduce carbon emissions, ensure energy security, help build a low-carbon economy and meet our binding target of generating 15% of energy from renewable sources by 2020. It is estimated that the RHI scheme could save up to 44 million tonnes of carbon by 2020.
The scheme is administered by Ofgem, and more information about their application process can be obtained here. Applications will be accepted from Monday 28 November.
The second phase of the scheme will include support for householders. This was due to launch in October 2012, but this timing is subject to review following the delay in introducing phase 1.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.