Details of the RHI Premium Payment (RHPP) released by the Department of Energy and Climate Change, have been warmly welcomed by Worcester, Bosch Group.
Crucially with this the RHPP will be an easy-to-administer scheme run by the Energy Savings Trust.
Lessons have certainly been learnt. The success of boiler scrappage, based upon an easy-to-administer scheme which gave consumers a voucher, is essentially being rolled out again. For RHPP consumers will get their voucher from the Energy Savings Trust and will have a set period of time to cash it in depending on which technology they choose, which is excellent news.
The details of the new scheme are that consumers off mains gas will get £1250 towards a ground source heat pump, £950 towards a biomass boiler and £850 towards an air source heat pump. Those on or off the mains gas grid can receive £300 towards a solar thermal installation. However, details of the tariff levels have not been revealed.
In effect, we have a one-off grant scheme with an annual payment from the RHI. My only concern is that the tariff levels, which are a vital part of the promotion of renewable technologies and are central to their ability to quote for a job, remain very opaque.
Under the plans announced RHPP will be cut off in March 2012 which means that between March and October, when the RHI tariff payments start, there will be no incentive for consumers to install renewable technologies. The concern is that this will lead to a significant dip in demand for six months while consumers wait for the incentive to return.
Neil Schofield, head of external and governmental affairs at Worcester, Bosch Group.