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Government remain committed on Renewable Heat Incentive

Posted on: 2012-06-12 15:49:22

DECC has announced the timetable for RHI is on track for July 2012.  RHI provides long-term support for renewable heat technologies such as heat pumps, biomass boilers and solar thermal panels.

Earlier in the year, DECC confirmed their commitment to expand the UK market for renewable heat technologies and support for the domestic sector under a 2nd phase of the renewable heat premium payment scheme (RHPP).  A delivery timetable for longer-term support for households, expanding non-domestic, and plans for staying within budget for 2012 were also set and which are on track.

Following the consultation in March, DECC will ensure there is a stand-by budget management mechanism in place by summer, ensuring sustainability by keeping within budget set by the comprehensive spending review. There will be a consultation on longer-term proposals in July 2012 as planned.

To ensure the supply chain can be maintained with the available funds, an upper limit of £70 million for 2012/13 has been set.   Note that the funding amounts announced in the spending review for 2013/14 and 2014/15 remain the same.  The £70 million upper limit ensures that the 2013/14 budget of £251 million will be enough to fund existing installations and new installations even if the 2012/13 limit is reached. DECC maintain that a higher limit for 2012/13 would not leave enough funds for the following year for new installations which could be very detrimental to the renewable heat industry.

DECC will provide a weekly information update on their website, tracking expenditure and also an estimated date of suspension prior to a formal notice period, if there is an unexpected surge in uptake.

Phase 1 - July 2011

RHI tariffs for non-domestic installations in the industrial, business and public sector will be introduced.

There will be £15 million for households through the RHI Premium Payment from July 2011. Participants will be required to provide feedback on how the technology performs in practice.

Phase 2 - Oct 2012

From October 2012, RHI tariffs for domestic properties will be available with the introduction of Green Deal.  

Please feel free to contact us if you require more infomration on this or the Green Deal.