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Renewable Heat Incentive

Posted by Chloe Bennett on 11th March 2011

After several months of delays, the Renewable Heat Incentive (RHI) is here. It’s due to start in 2012 and the £860 million pound scheme is set to save 44 million tonnes of CO2.


We have reached a time where future problems surrounding fossil fuels are inevitable as we cannot reply of the supply of oil and gas. By creating micro-generation technologies, such as solar PV and solar thermal; and launching government agreed incentives, we can start rebuilding our world with secure and natural energy sources like sun, rain and wind.

This new energy supply will reduce our traditional reliance on fossil fuels and at the same time provide new jobs throughout the supply chain: from research and development to manufacturing; renewable fuel production and supply; equipment installation and maintenance.

What is the RHI?

The RHI is similar to the Feed in Tariff but for heat instead of electricity "This incentive is the first of its kind in the world. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies” says Chris Huhne, Energy secretary. It will guarantee long-term payments of 20 years for the end user on their renewable installations and will include all types of heating, from households to factories and public sector buildings. The Early focus however is on industry, business and large organisations and the payments will be based on the ‘heat requirement that the installation is intended to serve’ using estimates rather than actual consumptions.

Once these micro generation technologies are in place we will be reducing the production of carbon, the harmful gas affecting our world. The Incentive exists to promote these renewable technologies and offer real opportunities for the public to aid the green revolution as adjustments like these need financial support to help bring change. The RHI will pay different tariffs for different technologies, but ministers claim it will provide a 12 per cent return on the original cost of installing the technology.


The Launch of the RHI will coincide with the Governments ‘Green Deal’ which is also set to go live in 2012. The DECC explains that “The coalition government will introduce legislation to make it possible for you to have energy efficient measures carried out through the Green Deal from autumn 2012.”

The Green deal

The Green Deal itself is the biggest shake up in the history of energy efficiency, it too has the opportunity to support thousands of jobs as anyone in the supply chain of green energy is set to benefit, as mentioned before. It is mainly a way to measure energy use and encourage ways into reducing energy consumption in your home or business – whether rented or owned – and allowing you to pay for the work from the great savings on your energy bills.

The work in question, incorporating in the ‘Green Deal’ is energy installation as a quarter, or even worse a third of a home’s heat can be lost through a loft and walls. By carrying out energy efficiency improvements such as insulation you will cut your fuel bills and the saving will allow you to enjoy your cosier home for less.

Image source: solcentric.co.uk


Categories: renewable energy, renewable heat incentive