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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the value for money of the renewable heat incentive subsidy mechanism; and if he will make a statement.

The Renewable Heat Incentive (RHI) compares favourably to other ways of saving carbon or generating renewable energy across the economy, contributes to our renewable targets, and plays a significant role in supporting supply chains in the renewable heating industry.

The Department for Business, Energy and Industrial Strategy (BEIS), and prior to BEIS, the Department for Energy and Climate Change (DECC) has made regular assessments of value for money in the RHI subsidy mechanism. The latest scheme Impact Assessment was made in February 2018 and is available on GOV.UK.

The RHI was reformed in 2017 and 2018 to focus on long-term decarbonisation, improve consumer protection, support supply chain growth and improve value for money for the taxpayer. These reforms included setting maximum heat demand limits for biomass, air source and ground source heat pumps in the Domestic RHI, removing wood drying as an eligible heat use for the Non-domestic scheme and giving Ofgem greater enforcement powers.