UK Renewable Heat Market Warming up Under the New Domestic RHI

Energy website, Green Business Watch has released its latest UK Domestic Renewable Heat Update. The report analyses activity under the Domestic RHI and looks at early indications as to how the scheme has impacted the renewable heat market. Since its launch on April 9th 2014, The Domestic Renewable Heat Incentive has racked up some fairly impressive application numbers. By the end of July, the scheme had seen 7,418 applications and of those, 4,961 are already approved and accredited.

While application numbers are impressive, early activity under the scheme has been heavily slanted towards legacy applications. Legacy applications are made for installations that were installed prior to the launch of the domestic RHI scheme but after its announcement in 15th July 2009.

New installations account for only 14.1% of applications under the Domestic RHI so far but after a modest start, they seem to be on the increase. New applications are those for systems installed after the launch of the Domestic RHI scheme and they give us an indicator for the domestic renewable heat market. It is still very early days for the Domestic RHI but so far installation numbers have increased month on month.

The Domestic RHI may not be setting the world on fire but as the scheme beds in, new installations are increasing. July saw 464 installations across the four technologies and was the strongest month to date.

Alastair Kay, Editor of Green Business Watch had the following comment:

"Given the costs for renewable heating systems, they are never going to be impulse purchases. There is time involved in the purchase decision and then a further lag as the installation works are scheduled and completed so it's not surprising that the scheme is taking a while to warm up. It is great to see numbers improving month on month and hopefully the Domestic RHI is doing its job and encouraging homeowners to see renewable heat sources as a viable option."

You can access the full report here -

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