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Biomass is eligble for RHI funding
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Chris Huhne said: “Renewable heat is a largely untapped resource and an important new green industry of the future. This incentive is the first of its kind in the world. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”
The tariffs for commercial and public sector installations have been published, with anything from pubs to schools eligible under the RHI to install technologies like biomass boilers, heat pumps and solar thermal. Community projects will also be eligible, provided a single installation is providing heat to more than one house. The tariffs will be paid for 20 years to eligible technologies that have installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced. Once in the scheme the level of support an installation will receive is fixed and adjusted annually with inflation.
The tariff payments will not start until October 2012, designed to run alongside the introduction of the Green Deal and other energy-saving measures. From July 2011, up to 25,000 installations will be supported by a RHI Premium Payment to help people cover the purchase price of green heating systems. Those taking up this payment will then be eligible for a RHI tariff from October 2012, as will anyone else who has had eligible equipment installed from July 2009.
The RHI Premium Payment will be worth around £15m and will ensure there is a fair spread of technologies across all regions of the UK, particularly those in off-gas areas. The installed technologies will be monitored to enable government, manufacturers, installers and consumers to better understand how to make sure householders get the most out of them. There will be clear eligibility criteria in order to qualify for a premium payment, including:
- a well insulated home based on its energy performance certificate;
- agreeing to give feedback on how the equipment performs.
The Micropower Council's Dave Sowden has welcomed the news. He said: “We are delighted that the government has largely shielded the residential sector’s early months of the scheme from the budget cuts brought about in the Comprehensive Spending Review, with a quarter of the first year’s funding being reserved exclusively for the household sector. This should provide confidence that this is a serious policy aimed at encouraging citizens to switch over to more sustainable home heating systems in their tens and hundreds of thousands in the early years, and subsequently, we hope, in their millions."
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