Energy Secretary Chris Huhne: RHI is back in business.

RHI is given the go-ahead

Published:  28 October, 2011

MANCHESTER/LONDON: The delayed £860m Renewable Heat Incentive scheme has been given the go-ahead by Brussels, said Energy Secretary Chris Huhne.

He was addressing the 33rd annual exhibition and conference of RenewableUK in Manchester, where WWF launched a report demonstrating how Britain could meet between 60% and 90% of its electricity demand from renewable sources by 2030.

In London, Energy Minister Greg Barker announced that state aid approval had been granted by the European Commission for the RHI to enable it to be launched for commercial purposes.

The scheme – subject to parliamentary approval – will be open to commercial applications from the end of November.

It is envisaged that within the next 12 months the scheme will also be maed available to householders. They will be able to get grants of up to £1250 for each renewable energy system they use. The RHI is expected to bring in £4.5bn of private sector investment by 2020.

The delay to the RHI was due to the European Commission's concerns that the biomass tariff was set too high. It has now been reduced from 2.7p/KWh to 1p/KWh.

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