Renewable Heat Incentive - Update
By Paul Sherrington Paul Sherrington
Level: Basic PLUS
Online Marketing Manager for EnergyLink Ltd
The Department of Energy and Climate Change (DECC) anticipate the new funding will "drive a more-than-tenfold increase in renewable heat over the coming decade."
The Chancellor also announced that the funding for the Renewable Heat Incentive will come directly from the Government rather than the Utility companies as originally planned.
Gaynor Hartnell, Renewable Energy Association Chief Executive welcomed the decision on the RHI, "Finally renewable heat moves to the heart of UK energy policy, exactly where it belongs". She went on to estimate that it will create tens of thousands of green jobs over the coming decade.
A relieved Chairman of the Solar Trade Association, Howard Johns, also welcomed the Government's statement, "This represents a really good win for the renewable heat sector". However, perhaps stung by the inconsistent and inadequate support for renewable energy by the previous Government, he went to caution that "the devil is always in the detail" and hoped that Solar Thermal in particular is to be well supported by the RHI.
What does it all mean?
At the moment we have no details of the level of payments that can be expected from renewable heat technologies. Although the original consultation on the RHI took place in February 2010, DECC has announced that it going "consider further the operation of the scheme including the tariffs and technologies supported".
These levels of RHI tariffs, set out in the original consultation document, were generally considered by the industry to be about right.
Like the Clean Energy Cashback scheme, which is designed to encourage electricity production from renewable sources, the proposed tariffs offer individuals, community groups and commercial organisations a rate of return on their investment that would encourage large volumes of installations to take place.
Clearly DECC's stated aim of "a more-than-tenfold increase in renewable heat over the coming decade" suggests that the tariff levels will have to remain broadly in line with the original consultation documents levels. But we will have to wait and see.
Just for once it looks like a UK Government has done the sensible thing by Renewable Energy and the RHI's by allowing the Renewable Heat Incentive scheme to start in 2011 as planned. This is welcome news for the entire industry and the large number of customers who had been waiting for the outcome of the October spending review.
Paul Sherrington has worked in the Online Marketing Industry for 4 Years and in the Energy Industry for EnergyLink Ltd since 2009. EnergyLink Ltd have been market leaders within the Solar Energy and Insulation industry since 2007. For information on Renewable Heat Incentives visit their website today.
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