It was announced on 20 October 2010 as part of the 'Spending Review' that the Renewable Heat Incentive (RHI) will go ahead in 2011. The scheme should start in June 2011.
What is it?
The RHI is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewables such as wood fuel.
How the scheme works
If you replace your existing fossil fuel system (e.g. gas, oil or coal) with a renewable technology (e.g. wood fule) you could get paid a set amount each year as an incentive for you to reduce your carbon dioxide emmissions and help prevent climate change.
An estimated figure will be used to work out payments. The payments will be annual. The estimated figure represents the amount of heat energy needed to warm the home and/or hot water and will vary by house age and size, as well as by technology.
Eligible technologies
Air, water and ground-source heat pumps
Solar thermal
Biomass boilers
Renewable combined heat and power
Use of biogas and bioliquids
Injection of biomethane into the natural gas grid.