FIT and RHI: new acronyms to conjure with



As if renewable energy incentive schemes weren't complicated enough already, two new schemes (and their obligatory acronyms) are due to be introduced in the next year or so.

In fairness, the small-scale low-carbon electricity feed-in tariff (FIT) is intended to offer a simple and straightforward incentive for small-scale electricity generation projects a less complicated alternative to the Renewables Obligation. Coming into effect on 1 April 2010, the FIT is aimed at organisations for which energy generation is not a core business. What are the implications?

Wragge & Co's energy experts have prepared a detailed analysis.

Meanwhile, the Renewable Heat Incentive (RHI) looks at heat rather than electricity. Although heating accounts for 47% of the UK's carbon dioxide emissions, little has been done to incentivise the generation of heat from renewable sources. The RHI is intended to address this, and is billed by the Government as the first scheme of its kind.

The RHI is due to be introduced on 1 April 2011. Wragge & Co's Energy team has prepared an analysis of the recent consultation.

For good measure, further amendments to the Renewables Obligation will also be made with effect from 1 April 2010.


Key Contact

Gus Wood, director, +44 (0)121 629 1954,

Derek Goodban, partner, +44 (0)121 685 2710,

This alert may contain information of general interest about current legal issues, but does not give legal advice.

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