Renewable Heat Incentive – introduction of phase two

Blog Author
David Hughes
Programme Development Leader - Property

Phase two of the Renewable Heat Incentive can’t come soon enough says Michael O’Sullivan.

The Renewable Heat Incentive (RHI) was launched by the UK government in November 2011. The aim is to provide financial support for heat generation from renewable energy sources.

The RHI was designed to be introduced in two phases with the first phase relating to industry, business and public sector organisations. Phase two will offer a domestic scheme for individual households. After a number of delays, the final details will be announced by the government in the summer of 2013. The scheme will be able to make payments from spring 2014.
The scheme will make payments to participants who use renewable energy to heat their properties

The RHI scheme will make payments to participants who generate and use renewable energy to heat their properties. The renewable energy systems that domestic householders can install and are proposed for inclusion in the scheme include:

•  ground source heat pumps,
•  air source heat pumps that heat water
•  biomass boilers
•  solar thermal systems

It is hoped that phase two of the scheme will increase the generation of heat from renewable energy sources and reduce the reliance on fossil fuels such as natural gas. There will also be benefits to the environment due to the reduction in production of greenhouse gases and carbon emissions, helping the country to reduce the effects of climate change.
There will be a boost to the UK economy

In my opinion, only positives can be taken from the introduction of the RHI. There will be an associated boost to the UK economy through additional purchases of renewable energy systems through merchants and wholesalers. I believe the introduction of phase two of the scheme cannot come soon enough.