Following the Chancellor's Consumer Spending Review (CSR) last week, we have received a number of calls regarding the future of the Renewable Heat Incentive (RHI).
During the CSR George Osborne announced that £700m of savings would be made by amendments to the current RHI scheme. At the time there was no further elaboration on the changes however, we have now received the following information which we would like to share with you:
Funding for the Renewable Heat Incentive (RHI) will increase to £1.15 billion in 2020-21 in order to make progress towards its climate goals.
The RHI budget in year 2016-17 is set to increase to £640 million, a 49% increase on the scheme expenditure in 2015-16.
It is currently unclear as to what the RHI reforms will entail, including any impacts on specific technologies or tariffs. It is expected that the Department for Energy and Climate Change (DECC) will publish information, including any consultations on this, in due course.
Reacting to the CSR, Ice Energy Founder & Managing Director Andrew Sheldon said "This is an extremely positive announcement; not only do we have confirmation that the RHI is to be extended by a further five years, it will also receive more than £1bn in additional funding.
"Furthermore the additional funding being made available for heat networks demonstrates that the current Government understands the critical role that renewable heat can play within the UK's energy infrastructure which is fantastic news for the industry.
"As soon as we have further information on any consultations or proposed reforms, we will of course share this with our valued customer base. For the time being though, it's very much business as usual in respect of the RHI and I would urge anyone considering heat pumps to take advantage of this tremendous opportunity."