Energy Minister Fergus Ewing has, in partnership with the UK Government, opted for Scotland to be part of the UK wide Renewable Heat Incentive (RHI), a scheme that will pay large producers of renewable heating for every unit of energy produced.
Householders will also receive support for the installation of renewable heat technologies such as heat pumps, solar thermal or biomass boilers under the Renewable Heat Premium Payment.
The move will help Scotland meet its target to produce 11 per cent of heat from renewables by 2020. Around three per cent of Scotland's heat demand came from renewables last year, three times the UK rate.
In recognition of concerns raised about the impact of bio-energy developments on the timber sector, the Scottish and UK Governments have also agreed to host a wood processing industry summit in the summer to ensure the sector, which employs more than 500 people in Scotland, continues to make a contribution to Scotland's low carbon economy. With the agreement of the UK Government this would involve the whole of the timber trade, including forestry, sawmill and wood processing.
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Energy Minister Fergus Ewing said: "Scotland is warming to renewable heating but we need to accelerate the use of green technologies. Small businesses to the largest industrial users of heat will be eligible for the RHI, while individuals will get help to install new equipment that can cut bills and reduce fuel poverty.
"The schemes, due to start in the autumn, will create new jobs in manufacturing, supply and installation, cut emissions and boost the move away from traditional fossil fuels for heat.
"Serious doubts have been raised about the availability and cost of Scottish wood supplies and in agreeing that Scotland should be part of these schemes, I have acted on concerns for jobs in Scotland's wood processing sector.
"Our policy is to see the biomass used in energy production utilised in the most efficient way, for heat and in areas off the gas grid. We will also review the support mechanism for biomass used in electricity generation later this year.
"I have agreed with UK Climate Change Minister Greg Barker to host a wood industry summit in Scotland to ensure the industry can make a growing contribution to our low carbon economy that is designed to ensure that the needs of our timber sector are understood and their interests are protected, not damaged."
(GK)
