The government is aiming the new policy at tackling 'fuel poverty' which affects nearly 2.3 million households in the UK, according to DECC statistics. Of this group, 365,000 are social housing renters who could benefit from the changes to the rules to help them keep their houses warmer and lower their energy bills.
One immediate benefit for 'social renters' to benefiting from the RHI, aside from lower bills and warmer homes, is the potential for them to shift away from paying in advance for fossil fuels, such as heating oil, to paying monthly in arrears on their electricity bills if, for example, they have an air source heat pump installed into their home.
National Housing Federation's Andrew Burke said,
“These changes to the RHI will reduce the unnecessary bureaucracy and costs for Social Landlords applying for RHI but the real benefit will be for their tenants, who will have warmer homes and lower energy bills. Renewable heating makes a big difference by reducing fuel poverty in off-gas grid areas.”