When hearing that energy users can receive payments for the energy produced, many people often think there is a catch. Put simply, there isn’t. The UK Government are so keen to reduce the CO2 generated in this country that they are dedicating £860m worth of funding towards the installation and ongoing use of renewable heat sources, such as wood pellet boilers.
So, not only do wood pellet users get money for the heat they produce, they can also feel satisfied in the knowledge that they are contributing towards the reduction of harmful carbon emissions. There are three simple steps to the RHI:
You install the renewable heat system in your building, for instance a biomass boiler
You measure how much heat your renewable energy system creates
You receive a fixed, regular payment based on the energy created, the type of technology used and the size of the system
The Renewable Heat Incentive is as simple as that. It is paid for by the Government and not by energy users, and provides regular payments for the heat produced. Currently it is only open for non-domestic and commercial users and domestic users are expected to be able to begin applying from October 2012 (although this is yet to be confirmed).