Opportunity for all

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This month the MCS looks at the latest Renewable Heat Incentive announcement

The Department of Energy and Climate Change (DECC) have announced that the Renewable Heat Incentive (RHI) is now scheduled to launch for domestic customers in Spring 2014. The objective of the domestic RHI is to support households in moving away from fossil fuels for heating, which will promote energy security and to contribute to the UK’s target on renewable energy deployment by 2020.

DECC’s recent announcement also stated there will be an expansion of the scheme to cover additional technologies. To support the industry, and encourage the continued uptake of the technologies by domestic consumers, the Renewable Heat Premium Payments Scheme has been extended to 2014.

With circa 1,300 MCS installation companies able to carry out the installation of solar thermal systems and approximately 840 companies able to install ground source heat pumps, there is a clear opportunity for companies to establish themselves and for the industry to develop the supply chain to take full advantage of the incentive when it launches. During the lead up to the launch of the domestic RHI, there is an opportunity for companies to go through the relevant training and undertake certification. Supply chain readiness is an important factor in the successful delivery of the RHI and the growth of the sector.  Over the coming months MCS will be rolling out more information for installation companies on how to up-skill and re-skill their operatives to take advantage of this opportunity.

In addition to the RHPP, the Green Deal will also play an important role with supporting the financing of heat generating technologies.  As an eligible technology group heat MCS technologies are able to access Green Deal finance, with consideration taken of the ‘Golden Rule’. 

To make the process of authorisation easier, and reduce the financial costs of working within the Green Deal Framework, the Green Deal Oversight and Registration Body and MCS have developed MCS 023 to enable MCS Installation Companies to become authorised Green Deal Participants. The new standard covers the additional requirements of Green Deal, and is available to download from the MCS website

It is important that a robust regulatory framework is established to ensure that the RHI is set at the correct level and its launch is on a sound footing. The MCS welcome news that new technologies are to be added, and looks forward to the new opportunities that the RHI will bring for our certificated installation companies and manufacturers.

DECC have stated that it is their intention to issue final details in summer 2013, and open the schemes for payment from Spring 2014.