The scheme, which is due to start in April 2011, will lead to a rapid increase in the number of homes and offices heated by woodfuel, biogas, solar thermal, heat pumps and waste-to-energy technologies.  This will be driven by the RHI guaranteeing that the average household will be paid well over £1,000 for the renewable heat they generate themselves.

Today, renewable heat technologies meet just 0.6% of UK heat demand, but by 2020 the government aims to meet 12% or more of the UK’s heat demand through renewables.  
Demand for heat dominates energy use in the UK and is responsible for 47% of the UK’s Carbon Emissions.

REA Policy Director Gaynor Hartnell said; “The UK may be languishing behind the rest of Europe on renewable heat, but the proposals launched today are an important world first.  The industry is confident these proposals give the UK pretty much the best chance of generating over 10% of its heat from renewables by 2020.”

The scheme, known as the “Renewable Heat Incentive”, offers long-term, fixed payments based on the type of installation.  There will be payments also for every unit of renewable gas fed into the gas network.  This “biomethane” is chemically identical to North Sea gas (or Russian imports).

Gaynor Hartnell said; “Renewable heat is the sleeping giant of renewable energy in the UK with a major contribution to make. The sooner we invest and build capacity in the renewable heat industry, the better value and energy security this will bring the UK - and the more jobs will be created.”

The RHI closely reflects the design recommendations of the REA, which won the enabling legislation for both the Renewable Heat Incentive and Feed-in Tariff for small scale electricity after a successful campaign with Friends of the Earth, 35 supporting organisations and strong cross-party support.  

Please see the REA RHI briefing here or below for further details on the RHI.

DECC  Press Release and the RHI consultation document

Please see the REA’s separate press release and briefing on the Feed-In Tariff.

For further information or to request an interview:

REA switchboard: 020 7925 3570

Leonie Greene, External Affairs, M: 07932 720 09, E: lgreene@r-e-a.net   

Jemma Robinson, Communications, M: 07726 694 989, E: jrobinson@r-e-a.net

     
Notes:
1.    Renewable gas can be made from cleaning biogas produced from the anaerobic digestion of organic wastes including household waste, sewage, farm waste and animal slurry – of which there is over 100 million tonnes available in the UK.  Renewable gas can also be made from syngas produced from gasification and pyrolysis.  National Grid has estimated under a ‘stretch’ scenario that renewable gas could supply nearly a half of domestic gas needs by 2020. 

2.    Money to pay for the scheme will either be raised from a levy on sales of gas and other fossil fuels used for heating – or from general taxation.  This is yet to be decided, but this will not delay introduction of the scheme.

3.    The Renewable Energy Association (REA) is the industrial body for the UK’s renewables industry. Its 600 members cover all renewable energy types and all scales from the energy majors to emerging companies in new energy technologies.