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The Renewable Heat Incentive is very similar to the Feed-in Tariffs, which have done more than anything else to accelerate the installation of renewable energy capacity in Europe.
That's why the founders of Renewable Heat Incentive Limited were so active in the campaign to introduce them in the UK. It succeeded and in October 2012 the Renewable Heat Incentive will come into force.
While the Renewable Heat Incentive is very similar to the Feed-In Tariffs, there are some important differences due to the fact that the vast majority of property in the UK generates its own heat from a gas or oil boiler. There is no 'National Grid for Heat' and so importing and exporting heat is not relevant.
It is hoped that the RHI will provide a similar boost to growth that the Feed-in-Tariffs are set to on the electrical production side. As with the Feed-in-Tariffs, the RHI will see solar thermal installations becoming a high-yielding form of investment.