The climate change sectary minister Chris Huhne MP has announced
the start of the new Renewable Heat Initiative, which is set to
tackle the UK's problem with emissions and dependence on fossil
fuels for heating. The incentive will be government funded
financial incentive to encourage the use of fossil fuel
alternatives. Industrial, business, public and domestic
sectors will be pushed towards the use of biomass, ground source
and water source heat pumps, solar thermal (heating) panels and
biomethane methods of gaining energy.
How will the Renewable Heat Initiative (RHI) work?
The RHI will work similar to other schemes like the feed in
tariffs scheme developed for solar energy. In the
beginning of the scheme cash payments will be given to owners of
non-domestic buildings who install systems to product their own
renewable heat sources. This will extend to the domestic
sphere in the schemes second phase in October 2012.
People who indicate the production of renewable heat will be
paid up to 8.5p/kWhr for hot water and heat that they generate and
consume themselves. This should mean that people generating
their own heat will earn a return of 12% per year, tax free.
This initiative will hopefully play a good part towards reducing
the UK's heavy reliance on fossil fuels for heating and could
dramatically change the way the public and commercial sector look
at taking ownership of their own heating sources.