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.
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 |