DECC’s Renewable Heat Incentive Scheme has been criticised for not being cost-effective.
The £860million scheme offers home owners and businesses financial incentives to invest in low carbon heating technology.
Energy firm BSOLAR claims that a delayed implementation of the RHI, now pushed back to October 2012, will make solar thermal and heat pump systems economically unviable.
Peter Bladen, director of BSOLAR said of the delay: “This means that renewable technologies like solar thermal and heat pumps are still not cost effective. This is effectively putting the brakes on the use of some green technologies in the home. Solar PV panels and wind power remain the only renewable that pay for themselves and provide an income.”
Energy Secretary Chris Huhne has said that he wants the RHI to benefit homeowners. When he announced the scheme, he said: “Given the current economic climate it is more important than ever that this scheme delivers value for money and ensures there is a fair spread of technologies across a range of property types.”
Mr Huhne added that more than a quarter of the first year’s budget is set aside for up to 25,000 household installations through a Premium Payment.