Business and public sector first for RHI

The Renewable Heat Incentive (RHI) has finally been given the green light by the government, and will initially be targeted mainly at big heat users in industry, business and the public sector.

Under phase I of the RHI, organisations using renewable heat will receive quarterly payments for 20 years. Tariff rates range from 1.9p to 7.6p per KWh for biomass boilers; from 3p to 4.3p per kWh for ground and water heat pumps, and geothermal; 8.5p/kWh for solar thermal; and 6.5p/kWh for biomethane.

Organisations that have installed eligible renewable-heat equipment since 15 July 2009 will also qualify for the scheme.

DECC has also published draft text of the Regulations that will underpin the RHI. Interested parties have until 5 April to comment. The energy and climate change department says it will seek parliamentary approval of the Regulations in July 2011 and will introduce the tariff scheme thereafter.