Renewable Heat Incentive (RHI) Scheme

RHI update – 26 October 2011

DECC was planning to launch the Renewable Heat Incentive (RHI) for non-domestic generators on 30 September 2011. State aid approval is a necessary condition for the scheme to go ahead. As part of that process, the European Commission expressed concerns that the large biomass tariff was set too high.

The Commission has now given State Aid approval to the RHI subject to the large biomass tariff being reduced from 2.7p per kWH to 1p per kWH. Revised regulations have now been re-laid in Parliament to reflect the required amendment to the tariff for large scale biomass. We hope to open the scheme to applications by the end of November 2011, subject to Parliamentary approval.

What is the Renewable Heat Incentive?

On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used. This is the first financial support scheme for renewable heat of its kind in the world.

At a time when we can see many problems with relying on a rapidly changing world and continuous reliance on oil and gas, we are proposing to put in place a key foundation stone of our energy future where both carbon reduction and energy security are assured.

The Renewable Heat Incentive(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.

Source and more information: www.decc.gov.uk