Government announces detail of Renewable Heat Incentive

Thu, 28-02-2013

This week the Department of Energy and Climate Change (DECC) set out the Government's long-term plan to ensure a renewable heat scheme for commercial, industrial and community organisations. 

DECC is making provisions to ensure that the scheme remains within budget and, and has also made a number of other improvements following consultation in July last year.
 
The Renewable Heat Incentive (RHI) is the first scheme of its kind, and is designed to revolutionise the way that homes and businesses in the UK are heated, and as a result cut carbon emissions and help the UK meet its renewables targets. 
 
Energy and Climate Change Minister Greg Barker said:
 
“I am fully committed to ensuring our Renewable Heat Incentive helps as many organisations as possible get on board with a range of exciting sources of renewable heat, and at the same time stays within its means. That’s why we are introducing a new, flexible way to control spending, alongside some further improvements to the scheme.
 
“We are also continuing to explore whether the tariffs we offer are set at the best levels to encourage further uptake, looking at how we can open up the scheme to new technologies, and considering the right approach to encourage householders to invest in renewable heat. We are continuing to work with industry and others on our plans and will be making announcements about our proposals for support as soon as possible.”
 
Anaerobic Digestion and the production of Biogas is one of the new and innovative technologies which could be considered for inclusion by the government as part of the RHI. 
 
Thomas Minter, Director of Malaby Biogas in Wiltshire, commented on the DECC announcement:
 
"We are pleased to see progress towards a conclusion of the RHI considerations by DECC. It has been difficult to build a strategy on the use of heat from our AD plant at Bore Hill Farm Biodigester without clarity on the RHI. Building confidence for projects that deliver high degrees of efficiency and sustainability is vital for real progress to be made in delivering the green ambitions of government. At times of economic uncertainty the need for energy efficiency and long term energy security is ever more vital. 
 
"The RHI is at risk of losing the confidence of the business development community if a clear commitment is not provided soon. We look forward to receiving this clarity as soon as possible."