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UK launches world's first renewable heat incentives

The UK government has launched an £860m incentive scheme over four years to increase number of industrial, commercial and public sector installations by seven times to 2020. The scheme will be introduced in two phases. In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users - the industrial, business and public sector. The tariffs will be paid for 20 years to eligible technologies that have been installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced. Under this phase there will also be support of around £15m for households through the Renewable Heat Premium Payment. The second phase of the RHI scheme will see households moved to the same form of long-term tariff support offered to the non-domestic sector in the first phase. This transition will be timed to align with the Green Deal which is intended to be introduced in October 2012.

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