Clean Heat Grant Scheme must be expanded if the UK is to decarbonise the heat sector
• REA calls for the Clean Heat Grant Scheme, which is designed to support heat pumps and biomass boilers, to be expanded in response to the Government’s ‘Future Support for Low Carbon Heat’ consultation.
• The REA also calls for a 12-month extension to the Non-Domestic RHI
• Without these changes, the UK’s Net Zero targets and plans for a Green Recovery are at risk
In response to the Government’s ‘Future Support for Low Carbon Heat’ consultation, the REA has called for an expansion to the Clean Heat Grant Scheme (CHGS) and a 12-month extension to the Non-Domestic RHI, which would address the current policy gap threatening businesses and jobs in the renewable heat sector.
In particular, the REA are calling for the level of the grant available under the CHGS to be flexible and commensurate to the size of renewable heat project being deployed, rather than the small flat level grant currently being proposed. This will allow for good quality heat projects to be supported and ensure that projects meet the heat requirements of the building they are being installed in.
Given the CHGS scheme will not start until April 2022, the REA are also calling for the existing Non-Domestic RHI to be extended for 12-months to prevent a policy gap. This will allow shovel ready projects, which faced delays due to Covid-19, to be deployed before the end of the existing scheme. This will reduce our carbon emissions and safeguard businesses, supply chains and employees across the heat sector. Failure to implement these policies will result in the further contraction of the renewable heat sector, unemployment, a loss of vital skills and severely reduce the UK’s ability to stimulate a Green Recovery and reach our Net Zero by 2050 targets.
Dr Nina Skorupska CBE, Chief Executive of the REA said:
“ The Government’s ambition to deliver a green recovery and achieve Net Zero by 2050 will not be achieved without a strategic approach to decarbonising our heat systems. The industry supports over 44,000 jobs, but there is currently a glaring policy gap, that if left unaddressed will have a catastrophic effect on existing businesses at a time when we need to be doing everything in our power to boost the economy and protect jobs.
The REA is calling on the Government to expand the Clean Heat Grant Scheme (CHGS) and a 12-month extension to the Non-Domestic RHI, to not only support a skilled, clean and essential sector but also giving the UK the tools to bounce back from Covid and to reach our net-zero targets.”
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Notes to editors
The REA’s Full response to the consultation can be read here: https://www.r-e-a.net/resources/future-support-for-low-carbon-heat-full-rea-response/
The Original “Future Support for Low Carbon Heat” Consultation can be read here: https://www.gov.uk/government/consultations/future-support-for-low-carbon-heat
About the REA
The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.
For more information, visit: www.r-e-a.net