A long term plan to ensure the government's renewable heat scheme for commercial, industrial and community organisations stays within budget has been set out by the Department of Energy and Climate Change (DECC). DECC is also making a number of other improvements to the scheme following consultation in July last year.

The Renewable Heat Incentive (RHI) is a world first and is designed to revolutionise the way homes and businesses across the nation are heated, cut carbon emissions and help the UK meet its renewables targets. The scheme was launched for the non-domestic sector in November 2011 and over 1300 applications have been received to date, with around £24million worth of RHI payments expected to be paid out in this financial year.


Energy and Climate Change Minister Greg Barker said: "I am fully committed to ensuring our Renewable Heat Incentive helps as many organisations as possible get on board with a range of exciting sources of renewable heat, and at the same time stays within its means. That’s why we are introducing a new, flexible way to control spending, alongside some further improvements to the scheme.

"This is however just the first step on our journey to safeguard longevity, provide certainty to industry and sustain growth under this scheme.

"We are also continuing to explore whether the tariffs we offer are set at the best levels to encourage further uptake, looking at how we can open up the scheme to new technologies, and considering the right approach to encourage householders to invest in renewable heat.

"We are continuing to work with industry and others on our plans and will be making announcements about our proposals for support as soon as possible."

(CD)