The Micropower Council has submitted its response to the Energy and Climate Change Committee Enquiry on the Renewable Heat Incentive.
In the submission, the council stated four key issues it wanted to discuss regarding the RHI. The first key issue concerned the RHI’s budget.
The council stated: “The RHI targets the limited off-gas grid market and heating replacements are fundamentally intrusive; there are less than 100,000 replacements a year made in this sector and consumers will not upgrade ‘early’ for the RHI.
“The budget management mechanism of the scheme is also robust. This scheme is very different to the runaway FiTs subsidy, and it will offer taxpayers value for money.”
The council also wanted to discuss the principle of awarding a subsidy based on the additional cost of a renewable system over a fossil fuel equivalent.
It argued: “The ongoing Sweett Group review of the DECC dataset has changed cost assumptions and The Addendum to the RHI has changed calculation methodology.
“However, the rate of return that consumers need as an incentive is a constant. Therefore the proposed tariff levels are now irrelevant and final tariffs will need to be recalculated that sufficiently reward consumers.”
The response also mentioned the Green Deal: “If the Green Deal and the RHI integrate together, then the consumer offering for a renewable heating technology becomes more attractive than a replacement oil or LPG boiler for off-gas grid properties.
“A holistic approach to policy is needed in order to get consumers the best value for money.