Scaled-down Renewable Heat Incentive gets go ahead
The announcement in the Government’s spending review that the Renewable Heat Incentive is to go ahead has been welcomed across the industry. The Department for Energy & Climate has confirmed that £860 million is being allocated, 20% less than the original plan. It is being introduced from 2011/12 to help ensure that the UK meets its 2020 targets for renewable energy and achieves efficiency savings of 20%, worth £105 million a year, by 2014/15 compared with the previous Government’s plans.
BEAMA saw the announcement as almost inevitable. Marketing director Kelly Butler aid, ‘The UK’s legally binding renewable-energy target always meant that a Renewable Heat Incentive had to be launched, despite the economic challenges we face. The real challenge 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.
‘Now the real work starts as we gear up the heat-pump industry to deliver the 1.4 million heat pumps to be installed by 2020, as we predicted to Government.’
The Solar Trade Association welcomes the news as ending the speculation of imminent cuts in renewable energy, with its associated uncertainly. Howard Johns, chairman of STA, said, This is excellent news for the solar industry and a real relief for all the businesses involved. Once we have more clarity on the RHI detail we will be able to continue the growth of this sector.’
The Combined Heat & Power Association also stresses the importance of early confirmation of details of the scheme to allow many biomass CHP schemes to proceed to development. Graham Meeks, director of CHPA, said, There are many important biomass CHP schemes in development, but the uncertainty over the future of RHI has caused most of them to be put on hold. We need assurance that the value of the RHI for CHP projects will be equivalent to the value of existing incentives under the Renewables Obligation. We will also seek to work with Government to ensure that the RHI can work to support the development of district-heating networks.’
