27/03/2012 - Renewable Heat Incentive Consultation
The Government has announced further plans for the delivery of the Renewable Heat Incentive scheme.
The Government has announced plans to manage the budget for the Renewable Heat Incentive (RHI) for commercial, public sector, industrial and community-scale installations to ensure its long term success. The £860 million RHI opened in November 2011 to make it more financially attractive to install low carbon heating systems like heat pumps, biomass boilers or solar thermal panels in place of fossil fuels. The Department of Energy and Climate Change (DECC) will launch a formal consultation in the summer to explore different policy options to ensure the RHI stays within its budget. DECC has launched a consultation proposing an interim measure to keep the RHI within the budgetary limits set by the Comprehensive Spending Review. The consultation runs until 23 April.
Climate Change Minister Greg Barker said:
“Putting in place cost control measures for the Renewable Heat Incentive is the prudent thing to do, given this is millions of pounds of taxpayers’ money at stake and taking on board the lessons learned from the Feed-in Tariff scheme.
“We will ask industry for its views in the summer and in the meantime will arrange for interim measures to be in place to manage the scheme’s budget. Looking at the scheme’s current spending it’s unlikely we will need to use these short-term measures, however Ofgem will hold a series of conferences for potential applicants over the next few months so it is right for us to be cautious and have the ability to act should we need to.
“Renewable heat is a largely untapped resource and an important new green industry of the future. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”
DECC will consult in September this year about increasing the number of technologies eligible under the industrial RHI with a view to implementing the plans by summer next year.
It will also set out shortly its long term plans to decarbonise the heat sector when it launches its Heat Strategy.
The consultation document is available on the DECC website (opens new window).
Source: DECC, 26/03/2012