On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used in buildings and homes. This is the first financial support scheme for renewable heat of its kind in the world.
There are significant changes from the details proposed in the original consultation documents released in April last year. The scheme will be introduced in two phases.
In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions. The tariffs for these supported commercial sectors will commence around July 2011.
During phase one, there will also be support of around £15 million for existing domestic households, through the Renewable Heat Premium Payment.
The second phase of the RHI scheme will see households moved to the same format of long-term support offered to the non-domestic sector in the first phase, although the tariffs are likely to be higher. This transition will be timed to align with the Green Deal which is intended to be introduced in October 2012.
For a good summary of the provisions of the RHI as announced visit the Kensa Website or for the full details visit the Department of Climate Change Website.
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