An umbrella factory and a holiday home are the first two businesses to bag support from the Government’s landmark new renewable heat scheme, it was unveiled today.
Eco umbrella supplier Booth Bros in Sheffield and Broadgate Farm Cottages in Beverley were both accredited for the £860m Renewable Heat Incentive (RHI).
The RHI is a tariff for renewable heat installations, which are being introduced in two stages. Today’s announcement marks the proper kick off for the first phase which covers non-domestic projects.
Climate Change Minister Greg Barker said: “This is just the start. Renewable heat is a largely untapped resource and an important new green industry of the future. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”
Charles Booth, chief executive of Booth Bros said the RHI would help his business become “carbon neutral”, while Elaine Robinson, owner of Broadgate Farm Cottages said the scheme was “attractive” because it offered an alternative to pricey LPG (gas) and oil heating.
The two businesses will get 4.5 pence per kiloWatt hour (p/kWh) under the small commercial heat pump tariff, which gives quarterly payments for the next 20 years.
DECC said they are guaranteed to get this amount for the next two decades because the tariff will not be changed “retrospectively”.
The second phase of the RHI will extend support for industrial and household heat projects.
The department was keen to stress the scheme’s finances will be carefully monitored in light of recent controversy over the solar Feed-in Tariff (FiTs) subsidy.
A spokesperson told ELN: “We want to have a look at our price control mechanism so we don’t get a repeat of the FiTs.”
The RHI is run by Ofgem E-serve on behalf of the Government and is expected to increase the number of installations in industry, the commercial and public sector to around 126,000.