Auditel Consultant:
Simon Hooper

Renewable Heat Incentive (RHI) Scheme

11 Mar 2011 | Filed under: Energy, Environment

Yesterday, the Government announced the details of the Renewable Heat Incentive (RHI) policy. According to the Department of Energy & Climate Change (DECC) this is the first financial support scheme for renewable heat of its kind in the world and it’s intended to revolutionise the way heat is generated and used in buildings and homes.

DECC describes this scheme as a “key foundation stone” of a reduced-carbon future with improved energy security.

The RHI policy document, sets out the detailed arrangements for this scheme, which will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat.

The aim is to get the regulations underpinning this scheme approved by Parliament in summer 2011 with the scheme being introduced shortly thereafter.

According to a DECC Press Notice, over 95% of heat in the UK is currently produced by burning fossil fuel and currently around half of the UK’s carbon emissions come from the energy used to produce heat – more than from generating electricity. The RHI is intended to reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations .

Full details can be found on the DECC website.