Mixed News for Green Deal & RHI Schemes

On 4th October, the House of Lords passed the Energy Bill without any further amendments.  This was an important milestone as the Bill facilitates the Green Deal that will allow householders to pay for energy efficiency improvements to their homes from the savings they make by using less gas and electricity.  The Bill still requires Royal Assent which should follow shortly then further information and details can be announced.
 

However, news on the Renewable Heat Incentive (RHI) is less favorable.  The DECC was planning to launch the scheme for non-domestic generators on 30 September 2011.  State Aid approval is a necessary condition for the scheme to go ahead.  As part of that process, the European Commission has expressed concerns that the large biomass tariff is set too high.  We understand that the Commission has given state aid approval for the RHI, subject to a reduction in the large biomass tariff and this can expect to receive written confirmation of this very soon.  Changing the tariff will require the regulations to be amended and submitted to Parliament for approval.  Therefore, the Government will not be able to open the scheme for applications on 30 September 2011 as they had originally planned. 
 

For more information on this matter please contact Robert Franklin on: 01234 362917 or via e-mail: rjf@robinsonandhall.co.uk