By Kari Williamson

Recipients will be paid up to £0.079/kWh for biomass boilers, £0.085/kWh for solar thermal and up to £0.045/kWh for heat pumps.

UK Energy and Climate Change Minister Greg Barker says: “The RHI will usher in a new era in clean green heat technology. It’s a world first and has the potential to put the UK at the forefront of a vibrant new green technology sector.

“Renewable heat will be a big win for our economy – it will support thousands of green jobs, reduce our dependency on imported fossil fuels, reduce our carbon emissions and help us meet our renewable target.”

Organisations will be able to apply to Ofgem for support under the scheme and will receive payments on a quarterly basis for heat generated over 20 years.

The UK Coalition Government has made £860 million available to support renewable heat.

“Excellent news”

Gaynor Hartnell, Chief Executive of the Renewable Energy Association (REA), comments: “This is excellent and very long-awaited news. REA regards the heat incentive as one of its most significant goals in policy advocacy in our ten years of existence, having led the campaign to get the powers included in the Energy Act 2008. It’s unique and will be watched by our European neighbours and further afield.

“It’s high time UK started benefiting from a major roll out of some of the cheapest forms of renewable energy. It’s not a perfect policy yet, but we look forward to working with DECC and the regulator to help it bring out the best in British renewables.”