March 2014

Eunomia to Evaluate RHI for DECC

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Eunomia (in consortium with Natcen, Centre for Sustainable Energy and Frontier Economics) has been appointed by the Department of Energy and Climate Change (DECC) to undertake an evaluation of the administration and delivery of the Renewable Heat Incentive (RHI). The analysis focuses on the delivery of the scheme against its objectives and upon determining lessons for the future. It also looks at the impact the scheme is having on customers and the supply chain.

The research comprises a mixture of qualitative and quantitative work with customers and suppliers in the non-domestic and domestic sectors. In addition, the project will make use of monitoring and administrative data. The evaluation will be a key source of evidence for policy-makers within DECC in their on-going management and review of the scheme.

The Government introduced the RHI scheme for non-domestic consumers in 2011. By bridging the gap in upfront, on-going, and barrier costs between fossil fuel alternatives, this policy mechanism aims to accelerate the uptake of renewable heat technologies in order to contribute to the renewables target of 20% of energy across the EU from renewable sources by 2020. It will be important to support the innovation and investment which will help to grow the supply chain, deliver the reduction in costs needed for renewable heat technologies to reach mass market level, and increase consumer awareness and interest in these technologies. The non-domestic scheme supports renewable heating from large-scale industrial heating to small business and community heating projects by providing a payment for each kilowatt hour (kWh) of renewable heat generated, payable over 20 years. The forthcoming domestic scheme, to be launched later this year, supports renewable heating in the domestic sector by providing a payment for each kWh of heat generated, payable over 7 years.

For more information on the RHI, please click here.