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Chancellor confirms continued RHI

Posted: 25 November, 2015. Written by Mark

In its Spending Review and Autumn Statement the Government confirmed that the Renewable Heat Incentive (RHI) will continue. The Chancellor stated that the RHI will be cut by £700m. However, in the Spending Review document, the following was outlined:

"The government will increase funding for the Renewable Heat Incentive to £1.15 billion by 2020-21, while reforming the scheme to deliver better value for money. By the end of the Parliament the government expects to have incentivised enough additional renewable heat to warm the equivalent of over 500,000 homes".

It is not yet clear how the RHI will be reformed, and there are currently no details on specific technologies. However, a budget cap has been proposed which would add a backstop to expenditure. Should forecasted expenditure meet the agreed budget for that year, or any future year then the scheme could be suspended to new applicants.