More Changes to Renewable Heat Incentive
Solar thermal panels could be the latest victim as the UK Government has announced yet another blow to the solar industry and UK homeowners looking to save money on their household bills, with plans to stop solar thermal panel installation receiving financial incentives under the Renewable Heat Incentive (RHI).
What are Solar Thermal Panels?
Solar water heating systems use solar panels, called collectors, fitted to your roof. These collect heat from the sun and use it to heat up water which is stored in a hot water cylinder. A boiler or immersion heater can be used as a back-up to heat the water further to reach the temperature you want – Energy Saving Trust
Both domestic and non-domestic solar thermal systems would be affected under new plans expected to come in effect in 2017.
In the consultation released last week (March 3) the Department of Energy and Climate Change (DECC) said “solar thermal has the highest tariff in the whole of the RHI and by this measure is the least cost-effective of the four technology types.” They added “when asked, around half of owner-occupier applicants said they would have it installed it anyway”
The DECC had been working on changes to the RHI since George Osborne’s Autumn Statement in November, where we announced how he pledged to extend RHI funding to £1.15 billion by 2021 and to enhance value for money by refining the program.
Solar Trade Association chief executive Paul Barwell expressed incredulity at the decision, stating that it did not make “any sense”.
“The government acknowledges the many benefits of solar thermal, yet proposes singling it out for the removal of financial support. With UK renewable heat deployment falling desperately behind target, government should be full square behind this technology as part of a strategic plan to permanently bring down heating costs for British families.”
“Discriminating against this globally important technology in the UK would send a terrible message to householders, and it would have very serious ramifications for the British solar thermal sector. Manufacturers of solar thermal equipment, including cylinder manufacturers as well as installers, risk a full scale winding-up of their sector. We are urging government to think again, particularly since sales enquiries are on the rise,” he said.
Solar thermal has very low running costs, does not need to be installed in a highly insulated house like many other energy saving methods and can be added to your existing heating systems with ease, making it very attractive option to those looking to save money.
