The Department of Energy and Climate Change has published its response to the consultation on Renewable Heat incentive cost control. The document can be downloaded from the DECC website. The details contained in the document will be taken to Parliament in June and will likely become legislation thereafter.
Basically after the fiasco surrounding the Feed in Tariff for electricity over the past several months (now thankfully resolved!) DECC have been keen not to have a repeat with regards the Renewable Heat Incentive and the document details a mechanism to prevent overspend of the allocated budget s through to 2015.
The budget for this year has been reduced and capped at £70m, current spend is circa £16m and expected to rise to £42m this financial year. If installations increase above this projected level then the scheme will be suspended £67.9m with one weeks’ notice. DECC will publish weekly spend figures which will allow prospective installers of the eligible heat technologies to assess whether funding under the RHI will be available. The budget for 2013/14 is £251m.
The RHI is up and available for non-domestic segment includes businesses; public sector; charities and not-for-profit organizations; and industry. The scheme is currently under prescribed, it offers businesses the opportunity to move from fossil based fuel sources to renewable ones and receive a very generous payments over the next 20yrs for doing so. As time progresses the financial support incentives will inevitably reduce, so now is the time to evaluate the benefits for your own business. Dont miss out!