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Renewable Heat Incentive is Launched

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Renewable Heat Incentive is Launched

Greg Barker announces long-awaited RHI via Twitter

The long-awaited domestic Renewable Heat Incentive has launched today. It was announced yesterday on Twitter by Greg Barker, Minister of State for Energy and Climate Change, with Ofgem accepting applications from 8am today.

The RHI offers homeowners payments to offset the cost of installing low-carbon heating systems and is open to everyone including homeowners, landlords and those building their own houses. It is the first long-term financial support programme for renewable heat in the world.

Launching the scheme, Greg Barker said:

This is the first scheme of its kind in the world – showing yet again that the UK is leading the way in the clean energy sector.

“Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies.

“It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan.”

Industry Reaction

Despite many delays to its introduction, with the incentive initially scheduled to launch in 2012, the RHI has received a warm welcome from the renewables industry. As with the launch of Feed-in Tariffs in 2010, it is set to give a kick-start to the renewable heating market.

Dave Sowden, chief executive of the Sustainable Energy Association, believes the domestic RHI is the beginning of the journey towards cleaner home heating:

Installing low carbon heating technologies into energy efficient homes is one of the most important ways of securing cheap, affordable, clean energy, and this world-first scheme is a very important start.”

The Renewable Energy Association has also backed the scheme, and cites it as one of the highlights of the Government’s green agenda in 2014. Mike Landy, head of on-site renewables at the REA, says that not only is renewable home heating environmentally sensible, but is now financially attractive too.

Technologies & Tariffs

Technology Tariff
Air-source heat pumps 7.3p/kWh
Ground and water-source heat pumps 18.8p/kWh
Biomass-only boilers and biomass pellet stoves with integrated boilers 12.2p/kWh
Solar thermal panels (flat plate and evacuated tube for hot water only) 19.2 p/kWh

Further Reading

Domestic RHI – Ofgem, ofgem.gov.uk

‘Domestic Renewable Heat Incentive officially launches’ – Peter Bennett, solarpowerportal.co.uk

‘Renewable heat incentive offers homeowners money to switch from oil’ – Adam Vaughan, guardian.co.uk

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