Infinitas Design

Renewable Energy System Design & Development


2020 Budget News – Renewables

Posted on 26 March 2020


Updates on the non-domestic RHI following the March 2020 budget

The March 2020 budget covered many areas, but we were all ears for information on the renewable heat incentive schemes and anything energy and climate related.

The key points we took were

  • Climate Change Levy on electricity frozen – meaning the cost of electricity gets closer to the cost of gas making electric heating systems more attractive. Will also benefit electric vehicle owners.
  • Raised tax rates for gas from April 2022 – the key stopper for renewable heat projects is the low cost of gas. Increasing the tax rate again brings the cost of gas closer to electricity making electric heating systems (heat pumps) more attractive.
  • The government will consult on introducing a new grant scheme from April 2022 to help households and small businesses invest in heat pumps and biomass boilers – no more info on this yet
  • The government will extend the Domestic RHI in Great Britain until 31 March 2022 – great news for homeowners including me!
  • It will also introduce a new allocation of flexible tariff guarantees to the Non-Domestic RHI in Great Britain in March 2021, helping to provide investment certainty for the larger and more cost-effective renewable heat projects – this is the biggie. We have no further information on what ‘flexible’ means but BEIS is working on getting details to us ASAP. However, I am taking it to mean that schemes with a tariff guarantee will be honoured beyond March 2021.
  • The Budget confirms £96 million for the final year of the Heat Networks Investment Project, which ends in March 2022. After this, the government will invest a further £270 million in a new Green Heat Networks Scheme, enabling new and existing heat networks to be low carbon and connect to waste heat that would otherwise be released into the atmosphere – great news for further progress of heat networks
  • £640m for tree planting in the UK – trees are the perfect tool for cleaning our air and absorbing CO2 as well as making the environment a better place to be – the more the better!