Renewable Heat Incentive: Phase 2 rollout will be delayed

Although the Renewable Heat Incentive (RHI) was made available to the industrial, business and public sector on November 28, the Department of Energy and Climate Change (DECC) is thought to be at a relatively early stage in putting together its proposals for phase 2.

Many of the details of the second phase remain ambiguous; with one of the most prominent outstanding issues being the inclusion of individual domestic installations. To date DECC has emphasised its commitment to the domestic sector, however, it remains unclear on how residential installations will work under the RHI.

The duration RHI tariffs will be paid is also yet to be finalised although it seems that a 10 or even five-year policy is likely.

Other areas of uncertainty include the RHI’s interaction with the upcoming Green Deal, energy efficiency requirements and whether there should be additional support for community-scale projects.

DECC has been aiming for October 2012 for the launch of the second phase of the RHI, however since the consultation document is yet to be published, this date is likely to be moved back. DECC is expected to make a statement on revised timing in the coming weeks.