The Energy Act 2008 became law on 26^th November 2008 and includes enabling powers for:

• A 'feed-in tariff for small scale electricity' (in Sections 41 to 43 of the Act)
• A 'Renewable Heat Incentive' (section 100), which in turn included
• An incentive for biomethane fed into the gas mains

For convenience we refer to these as renewable energy tariffs.  The introduction of these tariffs followed a year of campaigning alongside Friends of the Earth and a coalition of 35 interested organisations.

These measures are intended to be co-ordinated with each other and with the Renewable Obligation. This section deals with common issues and the individual details of each measure are described separately for the renewable electricity ('feed-in') tariffs, and the renewable heat tariffs ('Renewable Heat Incentive'). See also tariff FAQs.

Timetable for introduction

The government has announced that the electricity tariffs will be introduced in April 2010 and the heat tariffs in April 2011. The industry has proposed that the latter be brought forward so the two measures can be implemented at the same time.

Detailed design of the measures

The government is now undertaking detailed design of the mechanisms. In order to help accelerate the process, the REA established a series of working groups to come up with preliminary recommendations.

This blueprint deals with all the aspects which the tariffs will need to consider, so represents the most comprehensive summary yet of the way in which they might operate.

Consultation

The government intends to consult in the summer about its proposals for the design of the two measures. See more detailed timetables for the electricity and heat tariffs.

Combined heat and power

The tariffs are intended to support combined heat and power installations as well as pure heat and electricity generation.

A CHP plant, therefore might be rewarded under both tariffs or larger plant (above the 5MW threshold for the electricity tariff) might be supported by the renewable heat tariff and the Renewables Obligation. This is one of the key reasons why all these measures need to be compatible.