Planned incentives for renewable heat ‘not cost-efficient or effective’

The proposed renewable heat incentive offers too much support to homeowners looking to install equipment such as biomass boilers, but not enough to encourage widespread take-up, say academics

The proposed Renewable Heat Incentive (RHI) “looks likely to be neither very cost-efficient nor very effective,” according to the UK Energy Research Centre (UKERC).

The incentive, due to come into force next April, is the outgoing government’s mechanism for encouraging homes and businesses to generate heat from renewable sources. It will pay owners of equipment such as biomass boilers and solar thermal units a subsidy per kilowatt hour of heat generated. The policy is expected to be retained by the new government

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