The Government published its long awaited and much delayed proposals for the Renewable Heat Incentive (RHI) scheme in mid-March. The scheme will provide support for biomass, ground source heat and solar thermal technologies.

The RHI scheme will come in several phases. The first phase will see long term tariff support targeted at non-domestic users of heat energy. This will include large-scale industrial users, small businesses and community heating projects. It is anticipated that tariffs for qualifying systems will be payable from July 2011, subject to Parliamentary approval.

Also as part of the first phase Renewable Heat Premium Payments will be introduced to provide grant payments to households who install renewable heating. Further details of this element of the scheme will be announced in May 2011.

Phase two will see the tariff regime extended to domestic users in 2012. This will include those who have accessed the Renewable Heat Premium Payments and those who have installed qualifying systems since 15 July 2009.

Tariffs are payable for 20 years, adjusted annually for inflation, and will be funded out of general Government spending.

We will feature details of the scheme as they are announced, in future editions of this bulletin. Please contact our renewable energy team if you have any questions about this sector.