The UK Government is promoting renewable heating through a new financial support scheme called the Renewable Heat Incentive (RHI) from April 2011 onwards. The RHI is part of the Clean Energy Cash-back scheme which includes Feed in Tariffs for electricity.

The RHI will help reduce the national dependence on gas and other fossil fuels (a limited resource), lower consumer energy bills and help cut CO2 emissions.

Unlike electricity, renewable heat produced in the home through Solar Heating, Air and Ground Source Heat Pumps or Wood Fuelled Boilers cannot be exported back to a grid – hence the scheme cannot be called a feed in tariff. The RHI will pay a reward for each unit of heat produced.

The Renewable Heat Incentive could transform the economics of many renewable heating technologies, bringing your heating bills down and offering payback periods of just a few years. They could also provide peace of mind by reducing or eliminating the risk to you from future price rises for gas and electricity.

The final RGHI tariffs will be announced in October 2011, however until then, grants are available for homeowners who wish to install a renewable heating system. Installations completed before October 2011 will also be eligible for the RHI Premium Payments.