Why The Government Must Do More For Renewable Heat
By Cynthia Taylor
The CEO of Innasol, Silvio Spiess, ha argued that the government is not doing sufficient to tackle the way homes and businesses are being heated.
The government has introduced the Community Energy Strategy, also the announcements of the 2030 renewable energy target and the introduction of the Renewable Heat Incentive for the domestic sector, energy policy is vry high on the government's agenda and also on the current new flow.
In January a report was published on Renewable Heat which took a detailed look at the energy landscape in the Ukand eamined the savings that can be made by changing to a renewable heating solution, for instance changing to a biomass boiler, or installing a heat pump.
Some of the report's key findings has shown that heating represented 79% of the average households energy bill. That 55% of the commercial energy bill and contributed to 38% of the total CO2 emissions in the UK. The figures are high, and demonstrate that it is heating that should be governments focus, if they hope to alleviate financial pressures that are placed on homes and businesses, due to the increasing costs of energy and also to provide clean, greener energy.
Failing to meet targets – the RHI
the DECC has predicted that there will be a 20% increase in gas prices be the end of the decade. This signifies a 2.5% annual increase. With this possibility in mind the government has launched their non-domestic RHI (Renewable Hate Incentive), and will be following up with the domestic RHI during Spring 2014. this wont only save money for consumers on energy bills, those who use the RHI to switch to a renewable fuel, will receive payment quarterly, according to the amount of heat that is produced by the renewable heat technology.
The original budget was £863 million set for RHI, this was to be put aside until March 2015. However, due to delays in the commercial and domestic schemes, this deployment has not met the initial targets. Consequently, the 2015/16 budget fthat was announced last year of £430 million is somewhat £200 million - 33% lower than was originally anticipated - with no guarantee the original budget would be reallocated back towards renewable heat in the future. This will limit the impact and also uptake of the RHI scheme.
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