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06/07/2010 | Another MP increases the RHI pressure

Michael Fallon, MP, this week asked Secretary of State for Energy and Climate Change what his plans are for the future of the Renewable Heat Incentive Scheme; and if he will make a statement.

Energy Minister, Greg Barker, replied as follows: "The Government are committed to increasing the amount of renewable heat in the UK; this is a crucial part of ensuring we meet our renewables targets, cutting carbon and ensuring energy security. We are currently looking at the renewable heat incentive (RHI) proposals. Clearly there are benefits to the scheme, but we must also consider the impact of the costs, particularly given the financial constraints we must work within and the potential impact that funding options could have on vulnerable people. We are aware that there is uncertainty in the renewable heating industry and want to provide certainty and clarity as quickly as possible, but must make sure that we make the right decision. We will look to make an announcement on the future of the proposed scheme as soon as possible."

In response to this update, Ownergy Marketing Director, Scott McLean, said: "The fact that the Government recognises the need for a public announcement soon is welcomed, as the uncertainty and lack of clarity is not only damaging the industry but is causing deep unease amongst potential consumer and business investors in renewable heating systems. At a time when investment in renewable heat can play such an important role in meeting the UK carbon emission targets, then it is in nobodys interests for such uncertainty to continue.

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