Is There Life After The Renewable Heat Incentive Ends (RHI)?
The Chancellor announced a ban on connecting gas to new build homes from 2025 in March 2019. It is possible that such mandatory instructions will come into force before the RHI for new domestic installations ends on 31st March 2022.
The UK Government has outlined its intentions to replace the Renewable Heat Incentive (RHI) with a new Clean Heat Grant that will aim to help households and businesses decarbonise through technology and push the nation towards its net-zero target for 2050.
At the end of April last year, the Government announced that the non-domestic RHI scheme would close for new applicants from April 2021. However, the RHI for households and organisations has been extended to 31st March 2022. The extension is expected to avoid 1.2 million tonnes of carbon emissions through the retrofitting of 18,000 households with low carbon heating.
The Government is proposing a Clean Heat Grant that would commence in 2022, offering funding support of up to £4,000 for each household or business that integrates heating technologies such as heat pumps. In which, an eligible list of technologies applicable for funding support will also be outlined in the future.
Additionally, the Government are also considering a new Green Gas Support Scheme to increase the percentage of biomethane available on the gas grid.
The RHI was put in place on the 28th November 2011 by the Government as a means to convert 12% of UK homes to renewable heat by the end of 2020. Current statistics suggest it will reach 8-10%. While Government figures claim that the RHI has delivered payments of £2,800 annually to those signed up, all while saving 5.2 tonnes of carbon annually.
The Committee on Climate Change (CCC) has suggested that the UK would require 15 million homes to be fitted with heat pumps or hybrid heat pumps by 2035.
Last year, the Science and Technology Committee’s ‘Clean Growth: Technologies for meeting the UK’s emissions reduction targets’ report outlined a lack of replacements for the RHI as one of the 10 major shortfalls of Government efforts to date to reach net-zero emissions by 2050.
Commenting on the consultation, Frank Gordon, head of policy at the REA said: “Overall, these are mixed announcements for the renewable heat industry. On the one hand, they have provided much-welcomed clarity on the completion of projects currently underway, the prospect of new projects and the Government’s commitment to green gas. This is a step in the right direction for the sector, providing the certainty needed to increase investor confidence and deploy much needed renewable heat technology.
“On the other hand, we were disappointed by the lack of extension for new Non-Domestic RHI projects and the implications the cap on the future grant scheme will have. Both of which could result in business’s being unable to finish their projects or continue to operate at a time when the industry needs to be bolstered to achieve our legally binding Net-Zero targets.”
At Hero Renewables, we are a national, award winning company enabling communities and business to aid the UK’s transition to a green economy. Sharing our expert knowledge and renewable systems with you, ensuring your home or business stays warm, cosy and energy efficient with renewable energy.
If you’re looking to find out how much you could receive from the renewable heat incentive when you install a renewable heating system in your home or business, then give our team a call on 0808 222 0 111.