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Is Renewable Heat Incentive the future?

Author

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

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.

Suggested Citation

  • Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Mallick, Tapas Kumar & McLennan, Campbell & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abdul Rahim, Ruzairi, 2013. "Is Renewable Heat Incentive the future?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 365-378.
    • Handle: RePEc:eee:rensus:v:26:y:2013:i:c:p:365-378
    DOI: 10.1016/j.rser.2013.05.044
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    References listed on IDEAS

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    1. Alex Bowen & James Rydge, 2011. "Climate-Change Policy in the United Kingdom," OECD Economics Department Working Papers 886, OECD Publishing.
    2. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2013. "Revised feed-in tariff for solar photovoltaic in the United Kingdom: A cloudy future ahead?," Energy Policy, Elsevier, vol. 52(C), pages 832-838.
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    5. Cherrington, R. & Goodship, V. & Longfield, A. & Kirwan, K., 2013. "The feed-in tariff in the UK: A case study focus on domestic photovoltaic systems," Renewable Energy, Elsevier, vol. 50(C), pages 421-426.
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    1. Connor, Peter M. & Xie, Lei & Lowes, Richard & Britton, Jessica & Richardson, Thomas, 2015. "The development of renewable heating policy in the United Kingdom," Renewable Energy, Elsevier, vol. 75(C), pages 733-744.
    2. Fadl, Mohamed & Eames, Philip C., 2019. "An experimental investigation of the heat transfer and energy storage characteristics of a compact latent heat thermal energy storage system for domestic hot water applications," Energy, Elsevier, vol. 188(C).
    3. Bobrova, Yekatherina & Papachristos, George & Chiu, Lai Fong, 2021. "Homeowner low carbon retrofits: Implications for future UK policy," Energy Policy, Elsevier, vol. 155(C).
    4. Gobong Choi & Eunnyeong Heo & Chul-Yong Lee, 2018. "Dynamic Economic Analysis of Subsidies for New and Renewable Energy in South Korea," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    5. Yadav, Pankaj & Tripathi, Brijesh & Rathod, Siddharth & Kumar, Manoj, 2013. "Real-time analysis of low-concentration photovoltaic systems: A review towards development of sustainable energy technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 812-823.
    6. Seul-Ye Lim & Seung-Hoon Yoo, 2019. "Will South Korean Residential Consumers Accept the Renewable Heat Incentive Scheme? A Stated Preference Approach," Energies, MDPI, vol. 12(10), pages 1-9, May.
    7. Gaigalis, Vygandas & Skema, Romualdas, 2016. "A review on solid biofuel usage in Lithuania after the decommission of Ignalina NPP and compliance with the EU policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 974-988.
    8. Ming Shan & Bon-Gang Hwang & Lei Zhu, 2017. "A Global Review of Sustainable Construction Project Financing: Policies, Practices, and Research Efforts," Sustainability, MDPI, vol. 9(12), pages 1-17, December.
    9. Gaigalis, Vygandas & Skema, Romualdas, 2014. "Sustainable economy development and transition of fuel and energy in Lithuania after integration into the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 719-733.
    10. Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Mallick, Tapas Kumar & McLennan, Campbell & Abdul Rahim, Ruzairi, 2014. "Financial analysis on the proposed renewable heat incentive for residential houses in the United Kingdom: A case study on the solar thermal system," Energy Policy, Elsevier, vol. 65(C), pages 552-561.
    11. Lowes, Richard & Woodman, Bridget & Fitch-Roy, Oscar, 2019. "Policy change, power and the development of Great Britain's Renewable Heat Incentive," Energy Policy, Elsevier, vol. 131(C), pages 410-421.
    12. Hee-Hoon Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2019. "Residential Consumers’ Willingness to Pay Price Premium for Renewable Heat in South Korea," Sustainability, MDPI, vol. 11(5), pages 1-14, February.
    13. Gaigalis, Vygandas & Markevicius, Antanas & Katinas, Vladislovas & Skema, Romualdas, 2014. "Analysis of the renewable energy promotion in Lithuania in compliance with the European Union strategy and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 422-435.
    14. Gaigalis, Vygandas & Skema, Romualdas, 2015. "Analysis of the fuel and energy transition in Lithuanian industry and its sustainable development in 2005–2013 in compliance with the EU policy and strategy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 265-279.

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