Following the Government's announcement (26 March) that it is delaying implementation of the domestic Renewable Heat Incentive (RHI) until April 2014, the industry has reacted with disappointment.
However, the Government has confirmed it will continue in the interim with the current system of Renewable Heat Premium Payments, with similar funding levels in 2013/14 to those available in 2012/13, to provide householders who install renewable heating systems with modest grants. However, this is contrary to the industry's wish to see the final scheme implemented as quickly as possible.

In addition, the Government has confirmed that it does not intend to fast-track the integration of air to water heat pumps technologies, despite a shorter, fast-track consultation on their inclusion in September 2012.

Energy and Climate Change Minister Greg Barker said: 'The Renewable Heat Incentive, which has been available for non domestic investors for over a year, is a key part of our approach to cutting carbon and driving forward the move to more sustainable low carbon heating alternatives.

'So far over 1,000 groups have got on board, and today [26 March] we have outlined details of our tariff review to help encourage even more organisations to invest.

'We remain committed to introducing an incentive scheme for householders too, and have today set out an updated timetable for its launch alongside plans to extend our renewable heat voucher scheme in the meantime.'

Chief executive of the Micropower Council, Dave Sowden, said: 'The early feedback is that the market is bitterly disappointed with this delay. Taken with the delay in confirming the next steps of the 'zero carbon homes' policy, today's announcement is forcing industry to question whether the Coalition is serious about promoting domestic Renewable Heat during this Parliament.'

He continued: 'Following on from an absence of any mention in last week's Budget, a Cabinet-level unequivocal cross-Government commitment to an ambitious renewable heat policy is urgently needed to restore investor confidence.'

Plumb Center's head of sustainability, Tim Pollard, said: 'It's hard not to be disappointed by the delay.....but there are crumbs of comfort for installers.'

'I welcome the news that government has earmarked £250,000 for a first come, first served voucher scheme to boost renewable training. It also appears the scheme will focus on SMEs, which is great for our customers. The extension of the Renewable Heat Premium Payment (RHPP) will boost the market in renewable technologies such as biomass, solar thermal and heat pumps, which will help our off-grid customers.

'We also welcome the £250,000 investment in training the apprentices of the future working in the renewables industry. It's important to stress, with or without an incentive, renewables offer a vital alternative to beleaguered homeowners facing spiralling energy bills,' he added.

Supplier of ground source heat pumps, Kensa Engineering, predicts a further downturn in installation volumes following DECC's decision. Managing Director, Simon Lomax, said: 'Given DECC secured a £864m budget, it is difficult to accept the repeated delays which mean the domestic scheme will only run for a maximum of a year before the next election and more uncertainty. Most of the money will be left unspent which may please the Treasury but will have a devastating impact on renewable heating businesses, many of whom have believed previous DECC pronouncements and invested heavily in readiness for the RHI. The Coalition originally said it would launch in Spring 2011.'

Director of Danfoss, Chris Dale, said: 'This latest announcement by the Government is disappointing for the industry, but not entirely unexpected, as there have been so many delays to the Renewable Heat Incentive (RHI) for domestic users over the past few years. The RHI is exactly what consumers and the industry need to significantly boost the uptake of low carbon technologies and this simply will not happen until the Government makes it available to domestic users.'

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