Renewable Heat Incentive

The Renewable Heat Incentive is a mechanism being used by Government to encourage the installation of renewable in the UK, energy generated on site from low or zero carbon sources will enable the building owner to receive a rebate on their energy bill from their energy supplier.

For each unit of heat energy generated on site from low or zero carbon sources and used in the building, the utility provider will pay the building owner for the energy produced at a rate significantly above the normal energy price.

RHI comes into operation in June 2011.

The department For Energy and Climate Change will shortly publish the details of the Renewable Heat Incentive tariffs and the applicable technologies. The £850m of investment has the intention of boosting the amount of heat generated from renewable sources from the current 1% to 12% by 2020.

For an installation to benefit from Renewable Heat Incentive, the installations MUST have been installed by a company which is a member of a Microgeneration Certification Scheme.

The Renewable Heat Incentive Scheme is the first of its kind in the world and will therefore be a world-leading scheme to provide long term support for renewable heat technologies

Heat production is responsible for around half (49%) of the final energy demand consumed in the UK and roughly half of all UK’s carbon emissions.

The Department of Energy and Climate Change remain committed to the ambition of moving from 1% to 12% of all heat generated from a renewable source by 2020.

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