As part of the government’s drive to encourage renewable energy they introduced the Renewable Heat Incentive Scheme (RHI Scheme) in 2011 to give financial support to those producing heat from specific types of renewable technologies.
The RHI Scheme was due to finish in 2021 but the government has recently announced some new provisions as part of the 2020 Budget with the aim of continuing to support investment into the Green Energy sector.
What does the Budget say?
The “RHI package” in the recent Budget includes:-
- The domestic RHI Scheme has been extended until 31 March 2022.
- A new allocation of flexible tariff guarantees will be provided to the non-domestic RHI in Great Britain in March 2021.
What happens next?
The government is planning to replace the RHI Scheme with a Low Carbon Heat Support Scheme. This new scheme is due to start from April 2022. The purpose of the Low Carbon Heat Support Scheme will be to help households and small businesses invest in heat pumps and biomass boilers. The scheme has been allocated £100 million in funding.
A government consultation on this new scheme is due to take place in the coming months so make sure that you get involved and have your say!