Renewable Heat Incentive
Chapter 2 – Accessing Support Summary x
The RHI’s objective is to increase significantly the level of renewable heat;
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Non-domestic sectors will be have an RHI tariff from the outset – the industrial and commercial sectors; the public sector, not-for-profit organisations and communities;
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RHI Premium Payments will be available in 2011 and RHI tariffs will be introduced from 2012 alongside the Green Deal for homes.
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Ofgem will administer the RHI tariff scheme; and
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Owners of eligible installations for the RHI tariff scheme to apply to Ofgem for support.
What is the purpose of the RHI? The objective of the Renewable Heat Incentive (RHI) scheme is to increase significantly the proportion of heat that is generated from renewable sources and, by encouraging a switch from fossil fuels, contribute towards our wider carbon reduction goals. We recognise that one of the most significant barriers preventing take-up is the higher costs of renewable heating technologies, compared with fossil fuel equivalents. Even where an organisation wants to install a renewable heating source, often it is deemed too expensive. The RHI will compensate for this additional cost, which will help make renewable heating an option for all. Over time, we expect the cost of renewables to fall as technologies enter the mainstream, benefit from economies of scale and become more efficient. Ultimately, renewable heat needs to be able to compete on its own without Government support.
What sectors are supported? From 2011, all non-domestic sectors will be offered a tariff under the RHI: industrial and the commercial sector; the public sector; not-for-profit organisations and communities. For the domestic sector, the Government will also introduce Renewable Heat Premium Payments, which will subsidise the cost of installing qualifying renewable heating systems. (Please see the Introduction chapter for further information) Tariff support for domestic installations will not be available from the outset, but will be introduced during the second phase of support in 2012 alongside the Green Deal for Homes.
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