The domestic version of the government’s Renewable Heat Incentive (RHI) scheme will not be launched until August 2013 at the earliest, ministers have confirmed.
Its timetable was originally expected to align with that of flagship energy efficiency initiative the Green Deal, which is being phased in from next month.
The delay in the launch of the domestic RHI was prompted by ministerial concern over cash. The revised scheme, out for consultation, has been broadly welcomed by the renewable heat sector.
Homeowners installing green heat technologies will receive payments for seven years for each kilowatt-hour of heat produced assessed against the property’s expected heat use. But trade body Micropower expressed fears that the proposed tariffs for solar thermal and biomass heating would not be enough to encourage take-up.
Installers also pointed out the temporary Renewable Heat Premium Payment Scheme, which offers homeowners a lump sum payment towards the upfront cost of installing green heat systems, is due to end in March 2013. With the domestic RHI arrangements not expected to kick in until late summer or possibly early autumn, they warned there could be a hiatus in activity.
Roger Webb, director of the Heating and Hotwater Industry Council, said a phased rollout under consideration by the Department of Energy and Climate Change (Decc) could lead to a postcode lottery.
Decc has launched consultations on expanding the RHI for commercial and community customers, including making air source heat pumps eligible for the first time for commercial properties.
This article first appeared in Utility Week’s print edition of 28th September 2012.
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