RHI begins to see business interest

09/01/2012

Companies are beginning to sign up to the government's Renewable Heat Incentive (RHI) scheme to receive the new low carbon heating subsidy.

As the cost of business energy rises, companies are increasing looking to alternatives for traditional gas and electricity.

Under the RHI, businesses can receive subsidies for installing low carbon heating systems, such as heat pumps, biomass boilers or solar thermal panels.

Umbrella supplier Booth Brothers in Sheffield was the first to register its underfloor heating system, powered by a renewable energy heat pump.

A set of holiday cottages in Beverley, East Yorkshire has also signed up to the deal.

The £860 million RHI was launched last year to make it more attractive for businesses to source their energy from low carbon heating systems.

Applications for the RHI for non-domestic generators opened on Monday 28th November 2011, following a short delay while the government resolved the scheme's compatibility with European Union state aid rules and re-submitted the draft regulations to parliament.

Participants will receive payments on a quarterly basis for heat generated over 20 years. 

Since August 2011, up to 25,000 installations can be supported by a RHI Premium Payment to help cover purchase price.

To be eligible, companies must be well-insulated in line with Energy Performance Certificate guidelines.

The government also wants to encourage businesses to remove themselves from the gas grid.

It is expected that under the scheme the number of installations in the industry, commercial and public sector will increase by seven times, to approximately 126,000.

Greg Barker, climate change minister, commented: "Renewable heat is a largely untapped resource and an important new green industry of the future.

"It'll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies."

Currently approximately half of the UK's carbon emissions come from gas.

The RHI is expected to reduce emissions by 44 million tonnes of carbon by 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations.

Posted by Nicola Richards