The long-awaited Renewable Heat Incentive scheme opened for applications today after being postponed at the last minute in late September. The £860m subsidy scheme is predicted to result in 126,000 installations and save 43 million tonnes of carbon by 2020. Those interested in applying should visit the Ofgem website for further details.
Speaking to BusinessGreen, Greg Barker, Climate Change Minister stated:
“The RHI will usher in a new era in clean green heat technology,” Barker said. “It’s a world first and has the potential to put the UK at the forefront of a vibrant new green technology sector.
“Renewable heat will be a big win for our economy – it will support thousands of green jobs, reduce our dependency on imported fossil fuels, reduce our carbon emissions and help us meet our renewable target.”
Renewable technologies such as biomass boilers, heat pumps and solar thermal units installed since 15 July 2009 are eligible for payments between 4.5p per kWh and 8.5p per kWh for 20 years.
Under the Renewable Heat Premium Payment (RHPP), a pre-cursor to the RHI that will remain open till 31 March 2012, air source heat pumps proved the most popular technology, particularly in England and Wales.
Commenting on the scheme, Andy Johnston, Chief Executive of Local Energy said that the changes in FITs demonstrated the need to “act quickly”. He continued “Don’t sit on a plan or prevaricate over procurement processes… If the government thinks the budget is being squeezed they will rapidly change the tariff”.