Renewable Heat Incentive: Non Domestic Scheme Early Tariff Review

Overview

This consultation was carried out by the Department of Energy and Climate Change. In July 2016, the department merged with the Department for Business and Innovation and Skills to form the Department for Business, Energy and Industrial Strategy.

In response to industry and market feedback, DECC has looked at the evidence on cost data and heat usage assumptions used to set the levels of tariffs when the scheme was launched, alongside the level of uptake so far under the scheme and evidence from the renewable heat industry and market. As a result of this, we have launched the Non Domestic Scheme Early Tariff Review consultation that will be open until 28 June.

The consultation sets out how the Government proposes to respond to the low up take of some technologies in the scheme so far, to ensure that renewable heat can make an effective contribution to our 2020 renewable energy targets, support the UK renewable heat industry and achieve decarbonisation of our heat supply by 2050.  We have gathered new data on the assumptions used to set tariffs and used this in conjunction with evidence from the industry to calibrate new tariff levels. We are proposing improved support for ground source heat pumps (GSHP), solar thermal and large biomass installations. We expect that if tariffs are implemented at these levels this will drive significant deployment so that the industry can grow and invest with confidence. We also set out our approach to ensuring value for money in the scheme, and that we are committed to working with industry to help drive cost reductions through increased deployment.

What happens next

We plan to publish a response to this consultation in Autumn this year, with any resulting changes to the scheme planned to be implemented in Spring 2014.