Delay of the Renewable Heat Incentive sparks criticism

The Minister for Climate Change is yet to reveal an official date for when the Government’s Renewable Heat Incentive will come in to force. A move which is causing increased concerned among the green heat industry.

The Renewable Heat Incentive (RHI), once launched, will see homeowners and business owners receive a fixed payment for renewable heat generated by a specially installed renewable heating system. The scheme which operates in a similar way to the Feed-In Tariff (FIT) was originally scheduled to be ready for April 2011. However the date was later pushed back until June 2011. And there are now concerns that the delays are cooling off business for the green heating industry.

According to BusinessGreen the whole industry is waiting with “bated breath” for the incentive to begin. The heat pump industry is said to be particularly anxious. The designers of Europe‚Äôs largest ground-source heat pump, which recently got up and running in London, have said the scheme cannot come fast enough.

The Government’s has targets in place to generate 12 per cent of heat from renewable sources by 2020. But BusinessGreen has said that renewable heat systems in the UK currently account for around one per cent of the heat generated.

When questioned recently about the delayed RHI Greg Barker, the Climate Change Minister simply stated that the Government was continuing to work on the details of how the scheme will operate. Further details of the scheme are now expected to be release later in the year.

To make matters worse of the renewables industry a report published by the Carbon Trust shows that just one-third of businesses in the UK are investing money in the research and development of green products and services.

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