I am extremely grateful to my hon. Friend for raising this important point, not least because we hope that more than 25,000 people will take advantage of the premium payments. Providing that they comply with the terms of the payment, they will certainly be able to qualify for the RHI tariff.
The Minister will be aware that there is a sort of hiatus in the industry at the moment among consumers, as the previous question from the hon. Member for City of Chester (Stephen Mosley) indicated, because they do not know what the tariff will be and we do not have an absolute commitment that its introduction will coincide with that of the green deal next October. Can he confirm that the tariff will definitely come in and, in the interim, at least let us have details of what it will be in order to restore confidence, the lack of which is currently holding the whole scheme back?
I can certainly assure the hon. Gentleman that the tariffs will kick in alongside the green deal in autumn next year and that we will publish the rates of the tariffs this September. Premium payments are a really good way of ensuring that we dovetail strong consumer safeguards while priming new technologies.
(13 years, 5 months ago)
Commons ChamberMy question relates to the renewable heat initiative. I am sure that the Minister remembers the productive meeting that we had with Geothermal International, a small company in Coventry. Although the outcome on the commercial applications side has been very good, the continuing delays on the domestic side are holding back the industry. It is a very important industry in the small and medium-sized enterprises sector, which is being targeted by the Government. If he could hurry up with that, we would be able to make more progress.
I assure the hon. Gentleman that the domestic launch is not being delayed at all. The only difference is that at the same time as we launch the industrial scheme this year, we will launch the renewable heat premium. The premium will reach more consumers in the first year than the ordinary tariff under the original model was anticipated to reach. I assure him that the premium will add to the scheme, not detract from it.
The green deal is not a grant; it is designed to be repaid through the savings made on bills over 25 years. The beauty of the green deal is that, unlike any previous proposal, it will be totally unrelated to the household’s ability to pay. It will simply be repaid, regardless of the credit scoring or wealth status of the individuals in the household. Of course, other measures will always be needed to make sure that fuel-vulnerable and hard-to-treat properties have direct financial support.
Is the Minister aware that another source of useful efficiency savings in the domestic sector would be ground source heat pumps, as part of the renewables initiative? I see the Secretary of State nodding. Through his Minister, I can tell him that a company in my constituency which is very big in this area has jobs that it can create and orders in hand that it is ready to commit to. It seeks a meeting with the Secretary of State; it is not for the Minister to reply on that, but I would be grateful if the matter could be taken seriously in the Department.
We are very supportive of new technology, and I am well aware of the potential of ground source heat pumps. We want to enable a whole universe of new technologies to be part of the renewables solution. If the hon. Gentleman’s constituents would like to meet me, I would be very happy to do so.