The Renewable Heat Incentive (RHI) which will be launched in June 2011 is a world first and real fillip to an industry that will boost green growth in Britain, according to Energy and Climate Change Minister Greg Barker. He claimed it was likely to provide support for a wide range of renewable heat technologies from household solar-thermal panels to industrial wood pellet boilers.
He said he had been told by industry that Government support for the low carbon heat industry was not a luxury or a 'nice to have', but was absolutely critical to our energy security, for tackling climate change, as well as for jobs and economic growth.
'We have said since day one that this Government will be the greenest government ever. Confronting the challenges posed by heat will be vital in achieving that pledge'' he said.
'That's because the heat used in our homes, businesses and factories is responsible for around half of all the energy consumed in the UK, and accounts for roughly half of all the UK's carbon emissions. This huge drain on energy resources is not an issue we can ignore. Especially in the face of dwindling North Sea gas reserves and the need to protect ourselves from energy insecurity.'
Mr Barker said the Government's decision to give the green light to the RHI was significant since £860 million of finance from the Government over the next four years would help provide transparency, longevity and certainty to the renewable heat industry: 'The coalitions' decision to replace the previously proposed levy with straightforward Government funding will mean a less complex and costly approach for both business and consumers.
'It will drive a more-than-tenfold increase of renewable heat in Great Britain over the coming decade, shifting renewable heat from a fringe industry firmly into the mainstream.
'Over the coming weeks we will be working hard to finalise the details of the scheme - including to determine the levels of support for various technologies. I know the industry will be eager to get this detail as soon as possible so that they can get on with their investment plans. These details will be published by the end of the year, and I look forward to hearing the views of the sector.'
Mr Barker confirmed that the decision on the RHI, as well as confirmation that the Feed-in Tariff for small scale low carbon electricity, would continue as planned until 2013, unless there was higher than expected deployment.