RHI Latest News - Renewable Heat Incentive Explained
On Thursday 10th March the UK government announced details of the Renewable Heat Incentive. Under the new plans, the government is willing to subsidise low carbon heating by funding the installation of solar water heaters and wood boilers.
The scheme will initially be rolled out to businesses and public sector organisations, before being rolled out to homeowners and the wider market in October 2012. That said, 25,000 households are currently eligible for a special grant that would cover the cost of installing greener heating sources.
The government believe that this change will reduced carbon dioxide by 44m tonnes over the next 10 years, the equivalent of removing 20 gas fired power stations.
For the second phase to the whole of market, £15m has been set aside to help people cover the purchase price of these new installations.
The renewable heat incentive highlights the new commitment to increase heat from renewables, reduce carbon emissions and decrease our dependency on fossil fuels. Initial calculations indicate that people taking advantage of these subsidised renewable energy sources can expect a rate of return on their outlay of approximately 12% for the first few years, pending a later review.
Popular examples of these renewable heat sources include biomass boilers, which burn wood pellets, and solar thermal heating.
More information on the RHI can be found on the Department of Energy and Climate Change link below.