The minister’s comments were welcomed by microgeneration industry groups which have long called for a 50 per cent increase in the current subsidy rate, and for the 30,000 cap on the number of units that qualify for support to be lifted.
The feed-in tariff (Fit) for microCHP currently stands at 10p/kWh. The Micropower Council, the Combined Heat and Power Association and the Heating and Hotwater Industry Council want 15p/kWh and argue that the technology is one of the cheapest ways of decarbonising heat and power.
MicroCHP boilers produce electricity as well as heat, thereby reducing the amount of power consumers that install the technology need to take from the grid. They can also export power.
Speaking at an adjournment debate in the House of Commons, Barker said he would be “looking to raise the tariff” for microCHP and suggested further support for the technology could be available. “We may need to come back to other policy levers if the feed-in tariff alone does not send a strong enough signal,” he said.
Decc said it will launch the next phase of the feed-in tariff review by 9 February.