Yesterday, during budget day, Chancellor Rishi Sunak announced that the Domestic Renewable Heat Incentive (RHI) will be extended to 31st March 2022, extending the Government incentive by one year.
In his first budget, the Chancellor stated that the deadline for the Domestic RHI has been extended by an additional year, to 2022. The government will also introduce a new allocation of flexible tariff guarantees to the Non-Domestic RHI in Great Britain by March 2021.
What is the RHI and why is this important?
The Renewable Heat Incentive (RHI) is a Government financial incentive to promote the use of renewable heat. Its aim is to encourage people to switch their heating systems from traditional fossil fuels to cleaner and greener renewable energy.
These Government incentives are in place to help provide investment certainty for larger and more economical Renewable heat projects. The RHI aims to help the UK hit its’ carbon emissions target by 2050.
In total the Government has now allocated an additional £10 million over the next 12 months to help support the design and delivery of net-zero strategies and programmes.
Within the budget, Rishi Sunak highlighted a new low-carbon heat support scheme from April 2022, which will help households and small businesses invest in heat pumps and biomass boilers, backed by £100 million of new Exchequer funding.
In addition to this, the Chancellor spoke about introducing levy-funded support for Biomethane production to increase the proportion of green gas in the grid.
The new budget also saw a pledge to devote around £270 million into a new green heat network scheme, enabling new and existing heat networks to be low carbon and connect to waste heat, which would otherwise be released into the earth’s atmosphere.
Furthermore, the government will also launch carbon capture and storage with a minimum of two sites within the UK and are to be built over the next 10 years and will be supported by the creation of new carbon capture and storage infrastructure fund of at least £800 million.
The extension of the Renewable Heat Incentive, is great new news for homeowners and businesses. It allows more people within the UK to become energy independent and generate their own heat while claiming money back from the government instead of burning their money away.
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