Renewable News

Important News about the Renewable Heat Incentive and Feed in Tariff

The long awaited announcement has been made today (10/03/11) about the Renewable Heat Incentive. This piece of legalisation, the first financial support scheme in the world for renewable heat, will provide the impetus for the growth of renewable heat technologies such as solar thermal and heat pumps in the UK.

Key points are:

  • £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; likely levels of support are
              o Solar Thermal - £300/unit
              o Air Source Heat Pumps - £850/unit
              o Biomass boilers - £950/unit
              o Ground Source Heat Pumps - £1,250/unit
  • Those taking up the Premium will then be eligible for a RHI tariff from October next year when the Green Deal begins, as will anyone else who has had eligible equipment installed from July 2009.
  • Circa. 150,000 existing manufacturing, supply chain and installer jobs to be supported.
  • To be implemented summer 2011

Further details can be found at