The rationale for a renewable heat incentive

Consumers often ask why they should pay for renewable heat. The funds allocated for this over four years may be around £850 million, which is a great deal of money in these hard times. Renewable heat in effect comprises biomass, solar thermal panels for heat and hot water and heat pumps. There are two main reasons for encouraging renewable heat. The first is to provide a measure of energy security, lessening the dependence on imported fuel. The second reason is to help alleviate rapid climate change because, biomass aside, these technologies emit significantly less carbon dioxide than traditional fossil fuel and in the case of solar panels they emit virtually no greenhouse gases.

Is it right that these installations should be incentivised by the taxpayer? I think so. Continue reading