Government launch renewable heat scheme.

Yesterday the Government announced details of its long-awaited scheme for encouraging the generation of renewable heat.  The £860m Renewable Heat Incentive is the world's first financial incentive of its kind and will encourage installation of equipment such as biomass boilers, solar thermal panels and ground source heat pumps in domestic and commercial properties.

It will provide eligible claimants quarterly payments for the renewable heat produced – provided it is all used - for 20 years from the date they enter the scheme and will also be available to those who have installed eligible equipment since 15 July 2009.

The RHI will be introduced in two phases, with the initial tariff support targeted at the industrial, business and public sector, with tariffs for domestic properties introduced alongside the “Green Deal” in October 2012.

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