The 860 million scheme will help Scottish households and businesses to harness natural resources and generate heat for homes, offices and industrial units. Unlike the Feed in Tariff scheme, the RHI will be split into two phases the non-domestic schemes and the domestic schemes.
The RHI will first be targeted at non-domestic properties, who are the biggest users of heat in the UK. This will be a long-term scheme, which will be paid over 20 years to eligible technologies.
In May 2011 the Government proposes to announce the final details of the RHI Premium Payment'. Over 15 million is budgeted for this part of the scheme and it will be a key mechanism to encourage smaller scale developments, particularly for individual households.
Mike Reid, who heads up CKD Galbraith's renewables department said: "The announcement today is a real shot in the arm for rural businesses who are interested in developing renewable projects on any scale. Furthermore we are blessed in Scotland with woodlands which are a key resource for the biomass market and this news will be a real help to the forestry industry to provide a market for otherwise low-value timber products.
"One of the most important and welcoming aspects of this scheme is the assistance to those people who live in rural properties and who face a number of challenges in terms of energy for both homes as well as rural businesses."
CKD Galbraith have already been involved in installing schemes which will be eligible for the RHI and will continue to provide advice to clients who look to consider their options under the RHI.
To date the firm has been involved in the installation of biomass boilers to serve let cottages, offices, and private houses, as well as investigating the options available for a village district heating system. Contracts have also been negotiated on behalf of landowners for developers to grow short rotation coppice on their land.
The firm's renewables department works alongside its forestry department who can offer advice on managing woodlands for timber production, as well as its building department who can assist in applications for planning permission for example for a wood fuel storage shed. Find out more about our renewables services or contact Mike Reid who is happy to talk about how CKD Galbraith can help kick start your renewables project.