The scheme was developed as a result of the Renewable Energy Strategy consultation in 2008 and was announced by the Department of Energy and Climate Change (DECC) during the passage of the 2008 Energy Act. It was further announced, in October 2010, as part of the spending review, that the Renewable Heat Incentive would go ahead in July 2011. In the event the RHI was finally launched in November 2011.The Renwable Heat Incentive Scheme will represent over £860m of investment over the spending review period, driving a more-than-tenfold increase of renewable heat over the coming decade and shifting renewable heat from a fringe industry firmly into the mainstream. This is with the ambition of increasing the total heat produced from renewable sources from 1% to 12% by 2020. This would save about 60 million tonnes of CO2 by 2020, helping to minimise heating effects on climate change.The RHI pays participants of the scheme that generate and use renewable energy to heat their buildings. By increasing the generation of heat from renewable energy sources (instead of fossil fuels), the RHI helps the UK reduce greenhouse gas emissions and meet targets for reducing climate change.RHI PaymentsPayments are spread over 20 years, and a payment will be received every 3 months. Payment amount will depend on: •The type of technology you install.•How much energy the installation can produce (its capacity).•How much energy you actually use (you get a certain amount per kilowatt hour).