Complex cost controls for RHI proposed

Measures to stop the government’s renewable heat subsidy scheme going over budget could be in place by 2013.

The government is to introduce a series of complex mechanisms into the renewable heat incentive (RHI) to control costs.

However, it also intends to introduce a guarantee so that large projects do not lose expected subsidies.

The RHI is the government’s scheme to encourage take-up of renewable heating systems such as biomass boilers and ground-source heat pumps. It gives businesses and public sector bodies a subsidy for each unit of renewable heat they produce, guaranteed for 20 years (ENDS Report 443, p 47).

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