Double the incentive for green heat

THE TARIFFS for some renewable heat technologies could be increased under new proposals outlined by government today.

 

Businesses hoping to install large biomass boilers and ground source heat pumps could receive almost double the levels of incentives currently available.

 

“The Renewable Heat Incentive has been running for nearly 18 months, so now is a timely moment to look again at the tariffs,” said Energy and Climate Change Minister Greg Barker.

 

The RHI was introduced in November 2011 to increase uptake of renewable heat, often cast as the “sleeping giant” of UK green energy. But, according to the Department of Energy and Climate Change, less than a fifth of the scheme’s £133m budget for 2011-12 is likely to be paid out. This has prompted the current review, the consultation for which will last until June 28th.

 

DECC also confirmed that the tariffs available for smaller biomass installations will fall, due to “greater than forecast” uptake. This is part of the so-called degression mechanism, introduced on various schemes following the solar incentives controversy.

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