Domestic RHI scheme delayed until 2014

The launch of a domestic version of the Renewable Heat Incentive (RHI) has been delayed until spring 2014.

The delay was confirmed by the Department of Energy and Climate Change late last month when it launched its heat strategy. Tariff levels for the domestic scheme are due to be set in summer this year.

Strutt & Parker’s head of resources and energy team Michael Verity said a further delay to the scheme would create long-term uncertainty in the renewable heat sector and leave many people considering renewable heat projects unsure of whether to proceed or not.

Ahead of the launch of the non-domestic RHI, the government has extended the Renewable Heat Premium Payment (RHHP) scheme, which offers money off renewable heating equipment including biomass boiler and solar thermal panels, until the end of March 2014.

DECC also announced plans to carry out a review of the tariffs paid in the non-domestic RHI scheme. Large-scale biomass and small and large GSHP (geothermal and ground source heat pumps) could see an increase in tariff rates.

The department is also set to confirm whether or not the scheme will be expanded to include further technologies in summer this year.

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