The Renewable Energy Directive

The renewable energy directive stipulates that 15% of the Nation’s electricity should be produced from renewable sources by 2020. £860m of support over the spending review period to support renewable heat measures through the Renewable Heat Incentive (RHI) has been earmarked

The Renewable Heat Premium

The Renewable Heat Premium will also give a £950 grant to householders towards the cost of a Biomass boiler. The scheme opened on August 1st 2011 and is open for applications until March 31st 2012. £15m has been set aside for up to 25,000 renewable heat installations.


The target is for greater uptake in the commercial/business sector which accounts for the greater use in fossil fuels. So, to achieve the reduction in CO2 emissions to which the UK Government has signed up, there has to be significant up-take in renewables, particularly in the commercial sector.

The target, to which the UK is signed up, is to reduce CO2 emissions by 80% by 2050. 12% of energy consumption is to come form renewable energy by 2020. Heating accounts for 47% of UK final energy consumption. Currently only 1.5% comes from renewables. The transition to a low carbon economy, the renewable heat financial support mechanism being introduced are essential in providing average saving, between now and 2020, of 4.4 million tonnes of carbon per year. That’s equivalent to the annual carbon emissions of 2 typical gas fired power stations.

The RHI for industry, business & communities will be open for applications from 30th September 2011. The tariffs will be paid for 20 years to eligible technologies that have been installed since July 2009, with payments made for each kWh of renewable heat produced.

Click here for a full summary of the Renewable Heat Incentive scheme.