Department of Energy and Climate Change

Consultation on Renewable Heat Incentive

Consultation on the Renewable Heat Incentive (RHI)

Reference Number: 10D/542

Open Date:  01-02-2010
Closed Date: 26-04-2010

On 1 February 2010, the Government published a consultation on the introduction of a Renewable Heat Incentive (RHI) scheme, which it aims to introduce in April 2011. The consultation seeks views on the proposed scheme. The deadline for responses to this consultation is Monday 26 April. Details about submitting a response, including the relevant e-mail and postal addresses, can be found in the ‘How to Respond’ section of the consultation document. For information and queries, please contact rfi@decc.gsi.gov.uk.

The Renewable Heat Incentive (RHI) will provide financial support for those who install renewable heating, which qualifies for support under the scheme.

These proposals have been developed with input from our stakeholders - energy industry trade associations, Ofgem and NGOs - and this consultation constitutes a more formal opportunity for all interested parties to have their say on the details of the RHI mechanism. 

The Government proposes the following key aspects of the RHI:

  • The scheme should support a range of technologies, including air and ground-source heat pumps (and other geothermal energy), solar thermal, biomass boilers, renewable combined heat and power, use of biogas and bioliquids and the injection of biomethane into the natural gas grid.
  • Support heating at all scales, including households, businesses, offices, public sector buildings and industrial processes in large factories.
  • Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems at all scales, with additional compensation for certain technologies for an element of the non-financial cost  and a rate of return of 12% on the additional cost of renewables, with 6% for solar thermal.
  • The Energy Act 2008 provides the statutory powers for a renewable heat incentive scheme to be introduced across England, Wales and Scotland. The detailed legal framework will be set out in secondary legislation.
  • We are working to have the RHI in place for April 2011.

A full outline of the proposals for the Renewable Heat Incentive are provided in the consultation document, which can be found below.

The deadline for responses to this consultation is Monday 26 April. Details about submitting a response, including the relevant e-mail and postal addresses, can be found in the ‘How to Respond’ section of the consultation document. For information and queries, please contact rfi@decc.gsi.gov.uk. 

Consultation document

Supporting documents

RHI consultation response template Size: [84 KB] File Type: [.doc]
NERA 2010: Design of the Renewable Heat Incentive Size: [1.08 MB] File Type: [.pdf]
AEA 2010: Renewable CHP modelling report Size: [1.83 MB] File Type: [.pdf]
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