Government provides increased support for renewable heat


Combined heat and power plants, biomass boilers over 1MW, deep geothermal, ground source heat pumps, solar thermal and biogas combustion less than 200kWth will all benefit from extra Renewable Heat Incentive (RHI) support.

Energy Minister Greg Barker told Parliament that there will also be support for the first time for air-water heat pumps and commercial and industrial energy from waste.


He said: “Given low levels of uptake for some technologies in the scheme and additional evidence from stakeholders, we decided to re-examine the evidence on the assumptions and cost data used to set the levels of tariffs when this world first scheme for renewable heat was launched.

“It is vital that we get the level of support right so that the market can invest with confidence, cost reductions can be achieved and the market can grow sustainably.”

The Department of Energy and Climate Change is also calling for evidence on using the RHI for  biopropane, large biomass, ground source heat pumps and landfill gas.

REA chief executive Nina Skorupska said: “We welcome these improvements to the world’s first Renewable Heat Incentive. Although the scheme has under-performed in its first two years, the Government deserves credit for listening to industry’s concerns and implementing many of the necessary changes.

“Mixed messages from Government have unnerved many in the renewables sector lately, so today’s RHI announcement gives a timely boost to the green economy. There is still room for improvement, but what the RHI needs most now is to be left alone for a while, so the market can develop without fear of further changes.”

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