AUTUMN STATEMENT CONFIRMS COMMITMENT TO RHI
As part of the Autumn statement, Chancellor George Osborne clarified the future of the Renewable Heat Incentive (RHI). “ The Government has confirmed commitment to the RHI up until 2021, albeit with a caveat based on available funds over the fiscal year, “ says IBD’s Technical Director Darren Johnson.
“Should the annual pot be exhausted, the scheme will temporarily be suspended for new members during that year. DECC publishes the current and predicted RHI budget and expenditure on a monthly basis, so IBD will track this and advise our customers accordingly.”
Darren adds that there has not been any clear information provided on budget reallocation with regards to specific technologies, but it is known that digression measures have been in place for Biomass for the past few quarters. “My expectation is that tariffs should remain the same for Solar Thermal and Heat Pumps, with Biomass digression levelling out due to the current low oil price dis-incentivising the consumer. With regards to Solar PV, we are expecting a delayed outcome to the consultation and threatened 87% tariff cut. PV tariffs for Solar PV have been announced as 12.03p (higher rate for =< 4kWp) for Jan 1 2016,” says Darren. “ There is also an understanding now that Biomass may have been over compensated and cleaner technologies such as Heat Pumps now need to have greater incentives under the scheme. Whether this will be in the form of higher tariffs or cash lump sum payments, remains to be seen. What is clear is that we must all wait for further details of the exact nature of the future for the Renewable Heat Incentive Scheme,” he concludes. Please contact IBD Distribution to discuss the best RHI products for you.