The heating industry is breathing a sigh of relief following confirmation of the Renewable Heat Incentive in Chancellor George Osborne's Comprehensive Spending Review announcement.

The heating industry is breathing a sigh of relief following confirmation of the Renewable Heat Incentive (RHI) in Chancellor George Osborne's Comprehensive Spending Review announcement.

The government will provide £860 million between 2011 and 2012, "shifting renewable heat from a fringe industry firmly into the mainstream", said Chris Huhne from the Department of Energy & Climate Change.

Eligible heating systems include energy generated from air source heat pumps or ground source heat pumps, combined heat and power boilers, solar heating technology, solar thermal, biomass heaters, and wood fuel heating boilers.

BEAMA (British Electrotechnical & Allied Manufacturers' Association) managing director, Kelly Butler, commented: "The real challenge now is to ensure the scheme is designed to be attractive to the customer, and help grow the market for important technologies such as heat pumps."

* Image courtesy of Flickr.