Asked by: Lord Laird (Non-affiliated - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government (1) what was the cost of the Renewable Heat Incentive scheme in Great Britain in each of the last four years; (2) what is the budget for the Renewable Heat Incentive scheme subsidy payments for the next six years; (3) why a cap was introduced in 2016; and (4) at what cost level it is pegged.
Answered by Lord Prior of Brampton
Data on payments from the Renewable Heat Incentive (RHI) schemes are given in the table below.
Year | Domestic RHI | Non-domestic RHI | Total |
13/14 | 0 | £54m | £54m |
14/15 | £23m | £148m | £171m |
15/16 | £77m | £296m | £373m |
16/17 | £92m | £454m | £546m |
Based on data to end Aug 2017 | |||
In November 2015, the Government confirming a continued budget for the RHI to 2020/21, as set out in the table below. A budget cap allowing the scheme to be closed to new applications was introduced to reinforce existing cost control mechanisms within the RHI, to ensure that scheme expenditure does not exceed the allocated annual budgets.
| 16/17 | 17/18 | 18/19 | 19/20 | 20/21 |
Budget | £640m | £780m | £900m | £1010m | £1150m |
Asked by: Lord Laird (Non-affiliated - Life peer)
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.
Answered by Lord Prior of Brampton
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 |