On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy, intended to revolutionise the way heat is generated and used in buildings and homes. The Renewable Heat Incentive (RHI) policy document sets out the detailed arrangements for the scheme, which will encourage the uptake of renewable heat by providing long-term financial support to renewable heat installations.

The scheme will be introduced in two phases.

Phase 1 – In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sectors – which contribute 38% of the UK’s carbon emissions. Under this phase there will also be support of around £15 million for households through the Renewable Heat Premium Payment.

Phase 2 – The second phase of the RHI scheme will see households moved to a similar form of long-term tariff support offered to that offered to the non-domestic sector in the first phase. This transition will be timed to align with the Green Deal; the intention is to introduce this in October 2012.

Phase 1 – Key aspects of the Renewable Heat Premium payment for the domestic/household sector from July 2011:

Further details will be published shortly on the eligibility criteria for the Renewable Heat Premium, but will include the following principles:

1. A fair spread of technologies across all regions of the UK.
   
   
2. Monitoring to enable government, manufacturers, installers and consumers to better understand how to ensure ‘real life’ users get the most out of them, and to inform decisions on the tariff levels for Phase 2.
   
   
3. A sufficiently well insulated home based on its energy performance certificate (EPC).
   
   
4. A householder must agree to monitor and record performance.
   
   
5. A focus on people living off the gas grid, where fossil fuels like heating oil are both more expensive and have a higher carbon content.

Phase 2 – A full system of RHI tariff payments will be available to households from October 2012

• RHI tariff payments will start for homes alongside the Green Deal from 2012.
  
  
• Households taking up the Premium Payment will be eligible for RHI tariff support from October 2012 when the Green Deal begins, as will anyone else who has had eligible equipment installed since July 2009.
  
  
• For new build homes, an RHI tariff will be considered for the 2012 phase.
  
  
• The government will consult on the RHI tariffs due to start in October 2012 during 2011.
  
  
• Support will be available for a range of technologies, the details of which have still to be confirmed.

More information can be found at www.decc.gov.uk

	Published: 17/03/10
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