As part of the governments target of reducing carbon emissions by 80% by the year 2050, a Renewable Heating Incentive (RHI) has been proposed and is due to be applied in April 2011. The RHI will see users of renewable energy systems such as the ground source heat pump paid for the amount of electricity that they produce via their technology of choice.
The RHI will replace the low carbon buildings programme which currently sees homes with new installations receive up to £1200 in government grant funding for private residential houses. The budget of £10m which must be spent by April 2011 when the RHI scheme will take over.
To compensate for the RHI, power companies will then start to charge users of conventional heating systems a levy on their electricity and gas bills.
