A recent report from Green Alliance has shown that the Government's Renewable Heat Incentive (RHI) is currently on track to achieve the goals originally set out.
Green Alliance is an influential environmental think tank that focuses on global environmental issues, and has studied the progress being made in the RHI. The Renewable Heat Incentive is a commitment from the UK government to support the uptake of renewable heating systems across all market sectors. The incentive is designed to cover the cost of equipment & installation, the differential in fuel prices and to provide a Return on Capital of 12%.
Green Alliance claim that this commitment has underwritten revenue risk for renewable power generation and has removed some of the uncertainty previously associated with investing in this type of power.
The report also goes on to look at the Government's claim that the RHI will "encourage community-owned renewable energy schemes where local people benefit from the power produced...keeping the additional business rates they generate." Although this issue hasn't been fully tackled, Green Alliance do suggest the introduction of guidelines for local councils on how to distribute the money earnt through renewable power into local projects that benefit the whole community. With local council budgets significantly reduced in previous years, this type of scheme could see vital money pumped back into important community projects.
Overall, the RHI looks on course to provide the funding and confidence needed for renewable energy, such as wood pellets, to become one of the main sources of fuel and heating over the next few years.