Is Renewable Heat Incentive the future?

Siti Hawa Abu-Bakar, Firdaus Muhammad-Sukki, Roberto Ramirez-Iniguez, Tapas Kumar Mallick, Campbell McLennan, Abu Bakar Munir, Siti Hajar Mohd Yasin and Ruzairi Abdul Rahim

Renewable and Sustainable Energy Reviews, 2013, vol. 26, issue C, 365-378

Abstract: This paper focuses on the renewable heat incentive (RHI) scheme in the United Kingdom (UK); and in particular, on its implications in relation to solar thermal systems (STSs). First, a short review on the UK's energy demand is provided. Then, an overview of the past and present activities related to STS installations is discussed, covering regulation, policies and programmes, research and development expenditures and implementations. A financial analysis is presented afterwards, analysing the RHI scheme, in terms of total profit, payback period and average annual return on investment. This is based on installations of different sizes and at various levels of solar insolation. The analysis also presents the reduction of carbon dioxide emissions that could be achieved by installing an STS. From the financial analysis it is found that the RHI scheme could generate a good total profit, a high average annual return on the investment and an ‘acceptable’ payback period, depending on locations. As a result, it could increase the penetration of solar thermal systems in the UK. Significant reductions of carbon dioxide emission can also be achieved by installing an STS on a building.

Keywords: Solar energy; Solar thermal system; Renewable heat incentive (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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DOI: 10.1016/j.rser.2013.05.044

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