Possible cuts to Renewable Heat Incentive

As the roll out of the Renewable Heat Incentive (RHI) for domestic customers draws nearer, ministers contemplate capping the amount to be spent on the scheme.

The RHI will encourage households to install renewable heat equipment like solar, biomass boilers and heat pumps.

Currently only businesses are able to take advantage of the initiative,  but households will be able to receive money in return for energy generated from renewable sources from October.

After the debacle with the Feed-In Tariffs the government is keen to avoid a similar situation if there is a significant take up of the scheme.

A spokesperson for the Department for Energy and Climate Change said: "We are looking to introduce cost control measures under the RHI scheme and we are working with industry on how this can best be achieved."

In the past the government has expressed hopes that in excess of 25,000 households would take advantage of the initiative with millions of heat pumps being installed.

Those who have had renewable heat technologies integrated into their homes since July 2009 have been assured that they will also receive the subsidies as long as they meet the criteria.