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UK launches its Renewable Heat Incentive

By Anna Austin | March 14, 2011

The U.K. Department of Energy & Climate Change has released details of its previously announced Renewable Heat Incentive, a tariff program designed to help the U.K. meet its renewable energy targets of 20 percent by 2020 through long-term support for renewable heating technologies such as wood chip boilers and biogas power.

The DECC announced it will implement the program in a phased approach because of the wide range of technologies and fuel uses that could potentially be included within the RHI. In some areas, further work is required before a decision can be made as to whether support should be provided, according to the DECC, and the government does not want to hold up the program while work continues.

Beginning in 2011, phase one will target big heat users in the nondomestic industrial, business and public sector, for long-term tariff support. It will also introduce renewable heat premium payments for the domestic sector, with funding of around £15 million ($21 million) for households that install renewable heating. These direct payments will subsidize the cost of installing qualifying renewable heating systems.

Phase two will see households moved to the same form of long-term tariff support offered to the nondomestic sector in the first phase.

The government said it is aiming to launch phase one payments in July 2011 and will announce further details in May 2011. Phase two will be introduced in 2012.

 

To read more of the newly-released program details, visit http://decc.gov.uk.    

 

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