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Osborne kills off domestic RHI

The introduction of the domestic Renewable Heat Incentive is effectively dead in the water thanks to the Chancellor of the Exchequer’s Comprehensive Spending Review, says a leading heating industry figure.

Osborne kills off domestic RHI

The devil in the detail of last week’s Chancellor’s Review is the new budget for the RHI in 2015/16 which, at £430m, is only £6m more than the 2014/15 figure.

Neil Schofield, head of government and external affairs at Worcester, Bosch Group, says the new budget is, in effect, a cut in real terms.

“The £6m increase in the budget will barely cover inflation on the commercial RHI budget let alone the introduction of the domestic RHI.”

The RHI is funded directly from central government, but the start date for the domestic RHI has been consistently delayed, with the latest introduction scheduled for spring 2014.

“The Chancellor is sending a clear message that the future is not about renewable energy. The constant delays to the introduction of the domestic RHI has led many in the heating industry to believe that there is no real commitment from the coalition government towards domestic renewables.

“The new policy of starving domestic RHI of vital cash effectively sounds the death knell for the scheme.”

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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