
Businesses installing renewable heat technologies could receive greater financial returns from next year after it emerged that tariffs will increase for some technologies.
Businesses installing renewable heat technologies could receive greater financial returns from next year after it emerged that tariffs will increase for some technologies.
Climate minister Greg Barker recently confirmed an upcoming consultation on the Renewable Heat Incentive (RHI) scheme will discuss changes to certain technologies and their tariffs, while others will remain the same. If required, some tariffs could be reduced using the degression mechanism announced in February.
Following a spate of delays, he insisted the Department of Energy and Climate Change (DECC) now had "a credible, sensible timetable for delivery of the policy" in place that he hopes will up the appeal of the existing non-domestic RHI scheme.
The government is to propose changes to the tariffs available to business installing renewable heat technologies in the next few weeks. If the consultation is successful, the new tariffs could come into effect from next spring.
When asked by Business Green if the changes would increase incentives for those technologies that have seen disappointing adoption rates in the past, Mr Barker confirmed the government was seeking to increase some of the tariffs.
"I am absolutely determined to drive the take-up of renewable heat and that means ensuring deployment," he told the news provider. "We will publish a set of indicative tariffs that we think industry will be encouraged by.
He added that within a matter of weeks, the industry should have a high level of certainty on the level of tariffs for the non-domestic scheme moving forward, although improvements will not necessarily be seen across the board.
There is the possibility that the RHI scheme for businesses will be extended to cover a wider portfolio of technologies. Combined heat and power systems, air-to-water and air-to-air heat pumps, anaerobic digestion, geothermal and a number of waste-to-energy technologies could all potentially receive increased support in the future.
In terms of the domestic RHI scheme, the minister announced that the introduction date is also earmarked as next spring.
Mr Barker admitted the DECC had faced a series of technical and resource issues that have resulted in repeated delays to the introduction of the domestic RHI scheme.
However, these issues have now been addressed and the scheme is expected to be rolled out without any further hitches.