Renewable Heat Incentive faces new criticism

The future introduction of the Renewable Heat Incentive in its current form has been hit with a further blow after claims hit news headlines that the devices are too expensive and unreliable, especially for industrial users.

The Renewable Heat Incentive is due to be launched on April 1 next year and is expected to give around £1,000 a year to households that generate their own heat using green technologies like solar water heating collectors. However, gas bills have been predicted to rise by up to £104 for domestic users and a massive £321 for industrial users by the end of the decade.

These findings appear to have enraged big energy using firms who have argued that the 40 per cent rise in bills could call time on their businesses.

According to a report in The Daily Telegraph today, government sources said the Renewable Heat Incentive in its current form would not be introduced and is likely to be either highly modified and scaled back or scrapped altogether.

If it comes to the latter, then it will be a huge blow for the industry with many firms midway into preparations for the incentive following the success of the Feed-in Tariff.

And to further the blow for the Renewable Heat Incentive is the upcoming results of an unpublished trial by the Energy Saving Trust on heat pumps that has found the technology is only “variably” effective at heating homes.

The body has revealed that not only does the technology not necessarily save money, it also might not reduced carbon emissions either as it is very depended on the size of the home, the amount of insulation in the home and other defining factors.

The full report isn’t due to be released until later in the year after being postponed on more than one occasion.

Not all hope is lost for the incentive however, with a number of ministers reaffirming the coalition government’s commitment to encouraging homeowners to switch to green technology including heat pumps.

But with the Renewable Heat Incentive introduction date just eight months away, renewable companies are desperate for a final and conclusive answer to the ongoing questioning of the likelihood of the scheme ever seeing the light of day.

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