The Renewable Heat Incentive (RHI), is a UK government scheme to encourage the installation of low-carbon heating systems. The first phase, the details of which have just been published is aimed at large-scale installations. A domestic version of the scheme will be launched in 2012 as a part of the governments Green Deal. Between now and the launch of the Green Deal, the Renewable Heat Premium Payments scheme will provide grants toward the installation of domestic systems – details of these will be published in May.

RHI eligible technologies are biomass boilers, ground-source heat pumps, solar thermal collectors, and biomethane. System owners will recieve a set payment for each kilowatt hour of heat generated. Heat generation for large-scale installations will be metered and payments made accordingly. It is expected that the domestic version of the scheme will make payments based on expected, rather than metered generation.

The Green Deal is a yet-to-be defined scheme of loans to home-owners that is likely to be introduced by the government under the Energy Security and Green Economy Bill. These loans will be made for the purpose of making homes more energy efficient. A goal of the Department for Energy and Climate Change is to ensure that loans cost no more than the fuel bill savings gained from the work done. It is currently expected that loans will be capped at £6000. It is currently expected that the Green Deal will come into effect from Autumn 2012.

One to watch for the future…