Renewable Heat Incentive Scheme

(asked on 10th January 2017) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty’s Government what the net costs of running and funding the domestic and non-domestic renewable heat incentive schemes were in (1) England, (2) Scotland and (3) Wales, each year since their inception, and what they expect this to cost in the next three years.


This question was answered on 24th January 2017

The Renewable Heat Incentive (RHI) scheme provides financial incentives to households and non-domestic consumers, including public bodies and charities, to help bridge the gap between the cost of renewable heating systems and conventional alternatives.

The non-domestic RHI scheme launched in November 2011 and the domestic RHI launched in April 2014. Both schemes are administered by Ofgem and are open to England, Wales and Scotland; however scheme costs are calculated collectively for Great Britain.

Table one: Scheme administration costs (amount paid to Ofgem to administer the scheme. The domestic set-up costs are included in the non-domestic figure)

Year

Non-domestic

Domestic

Notes

2010-11

£1.5m

0

2011-12

£4.8m

0

2012-13

£5m

0

Includes domestic RHI preparation costs

2013-14

£7m

£4.7m

2014-15

£7.7m

£6.6m

2015-16

£6.8m

£5.3m

Table two: Total subsidies paid (amount paid to scheme participants)

Year

Non-domestic

Domestic

2010-11

0

0

2011-12

£2m

0

2012-13

£27m

0

2013-14

£52m

0

2014-15

£136m

£23m

2015-16

£295m

£77m

Table three: Budget to fund subsidy payments to existing and future participants in both schemes to 2021

Year

Budget

2015-16

£430m

2016-17

£640m

2017-18

£780m

2018-19

£900m

2019-20

£1010m

2020-21

£1150m

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