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Renewable Heating Incentive Gets Another Boost

Businesses and households in the UK looking to invest in renewable energy systems were given a huge boost this week as further progress was made in Renewable Heating Incentives scheme. In the latest update the government appears to have backed the scheme for 20 years, paying businesses and households at pre-determined levels per unit of heating generated in a similar system to Feed-in-Tariffs for renewable electricity.

Initially, it will only be businesses that can benefit from the scheme, but in 2012 the scheme will open up to households looking to retrofit renewable heating systems in their homes. In the meantime, households who want to install renewable heating could benefit from the Renewable Heating Incentive Premium, which is a one-off lump-sum payment that could account for around 10% of the total cost of your installation (depending on which renewable energy system you choose and at what scale).

The success of the Renewable Heat Incentive is extremely important to the UK government as they aim to kick-start the industry in order that renewable heating accounts for 20% of all the UK's heating by 2020. As things stand, domestic heating consumption accounts for approximately 50% of the UK's C02 emissions. The governement also wishes to reduce the UK's dependancy on gas and non-renewable energy as prices continue to soar affecting UK citizens cost of living.

The Renewable Heat Incentive is ideal for households looking to install Ground Source Heat Pumps and Air Source Heat Pumps, arguably two of the most efficient renewable energy systems available to the home. Relitively low cost and low maintainance, once installed the two technologies offer relitively low impact on the look and running of your home. Each system can be tailored to those with an abundance of space or those without and they can be used in both rural and urban residences.

Now the legislation is in its last period of review it is important to act now so that you do not miss out on the incentives on offer. Savvy consumers will all be competing for the Renewable Heating Incentive Premium which is limited to approximately 3,000 retrofit applications. To get ahead of your neighbour, you may be wise to contact your local renewable energy specialist now and have your property surveyes and specified so that you can get things underway and be the first to qualify for this one-off extra. For those taking loans to pay for this technology, this premium could account for a whole year's repayments upfront with money to spare.

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