The Renewable Heat Incentive will be open to applications from Monday

Published:  25 November, 2011

DECC has announced that the Renewable Heat Incentive will be open to applications from businesses and communities from Monday 28 November.

The Department of Energy & Climate Change (DECC) said this morning that "businesses and communities" would be able to apply for a heat tariff payment, "ushering in a new era of clean green heat technology".

The much-anticipated non-domestic Renewable Heat Incentive (RHI) will provide payments for heat generated from renewable technologies including biomass boilers, solar thermal equipment and heat pumps that have been installed since 15 July 2009.

Recipients will be paid up to 7.9p per kWh for biomass boilers, 8.5p per kWh for solar thermal and up to 4.5p per kWh for heat pumps.

Energy & Climate Change Minister Greg Barker said the RHI has the potential to "put the UK at the forefront of a vibrant new green technology sector".

DECC has estimated the RHI will cut emissions by 43 million tonnes of carbon by 2020 – equivalent to the annual carbon emitted by 19 typical new gas power stations. Up to 500,000 jobs are expected to be created in the renewables industry as a whole by the end of the decade.

The start of the scheme follows a short delay while DECC resolved the scheme’s compatibility with EU state aid rules. Organisations will be able to apply to Ofgem for support under the scheme, and will receive payments on a quarterly basis for heat generated over 20 years.

The Renewable Heat Premium Payment scheme is already running, providing money off renewable heat technologies for householders. Vouchers are still available, and householders can apply for them until 31 March next year.

For more information on the scheme, visit the DECC websiteFor more information on the scheme, visit the DECC website.