DECC announce delay to the domestic RHI scheme, with mixed-bag announcement on UK Heat Strategy.
The The Department of Energy and Climate Change (DECC) have today confirmed that the Renewable Heat Incentive (RHI) for domestic premises would 'open for payments from spring 2014'. Until today, it was understood that the domestic RHI would begin supporting installations from summer this year, with tariff levels to be published in the coming weeks. DECC is still finalising details, but plans to release information on the scheme this summer. DECC have also announced that the Renewable Heat Premium Payment scheme (RHPP - an interim grant available to domestic renewable heat installation owners) will be extended, to continue providing support to eligible installations. Initially planned to end by 31 March 2013, this will now be extended until March 2014. The announcements were made as part of the governments Heat Strategy document released today. Following on from the launch of the UK's first strategy in heat last year, DECC have set out their action plan for transitioning the country to low carbon heating. This has included several key developments: 1. A new Heat Networks Delivery Unit within DECC to provide expert advice in delivering district heat, with a £9 million package to help local authorities deliver projects. 2. Up to £250,000 for a new 'first come first served' voucher scheme for heating installers to help pay for the cost of training, with up to £500 or 75% of the cost of training provided per person 3. 100 green apprenticeships to be funded primarily for young people in small scale renewable technologies 4. £1 million for Manchester, Leeds, Newcastle, Sheffield and Nottingham to help them develop heat networks. There were further details on the future of the Renewable Heat Incentive released today, with DECC confirming which technologies in the non-domestic scheme will have their tariffs reviewed this year (see table below). DECC remain committed to increasing some non-domestic tariff levels where there is compelling evidence to do so - a short consultation on likely tariff changes will be launched this spring with the outcome announced in the autumn of 2013. Any new tariff levels are expected to come into force in spring 2014, however any installations accredited from 21 January 2013 will also benefit from any increase in tariff level, as per DECC's earlier announcement. Regen will of course be updating its members with further developments and will be working closely with DECC and Ofgem on the detail of these announcements. Whilst frustrating that further delays have been introduced into the roll-out of domestic RHI, the overall intention behind the announcements today was one of positivity. DECC evidently see the release of today's Heat Strategy as a clear indication of the government's commitment to renewable heat, and whilst the focus outlined in the announcements today is around supporting larger scale deployments, the role of domestic RHI is still clearly firmly on the agenda.