New tariffs for world first renewable heat scheme

Office blocks, factories and community centres could be among a number of buildings across Great Britain to benefit from more cash for renewable heat under proposals set out by the Department of Energy and Climate Change (DECC).

DECC is consulting on increasing the tariff levels for heat generated by ground source heat pumps, large biomass and solar thermal kit accredited under the Government’s Renewable Heat Incentive scheme (RHI).

The RHI is a world first and is designed to revolutionise the way homes and businesses across the nation are heated, cut carbon emissions and help meet renewables targets. The scheme was launched for the non domestic sector in November 2011.

Energy and Climate Change Minister Greg Barker said: “Over 1,300 innovative renewable heat technologies have already been installed under this scheme and are generating cash for the heat they produce.

“The Renewable Heat Incentive has been running for nearly eighteen months, so now is a timely moment to look again at the tariffs.

“We need to make sure they are set at the right level to continue bringing forward investment and growth and at the same time keep costs to the taxpayer to a minimum. That’s what our proposals set out today are designed to do.”

The proposed levels follow on from a review of the evidence base used to set tariffs earlier this year and are designed to increase uptake of heat pumps, large biomass and solar thermal technologies by increasing the tariff on offer.

DECC is not proposing to increase the tariffs for small and medium biomass as part of this review, based on the current high level of demand for these technologies. Biomethane and biogas combustion are outside the scope of this review.