Shifting focus
Finian Parrick, managing director of Zero Carbon Future, considers why the
government must shift its focus away from the RHI to build lasting consumer
confi dence in renewable heating
T
he government’s recently opened
domestic RHI has the potential
to boost business for installers
and the commitment of more
support behind the industry is an
encouraging move.
Combined with the Green Deal, the
domestic RHI means renewable heating
solutions are now a more affordable
investment than ever for homeowners.
However, there has been minimal promotion
so far of the environmental benefi ts and,
without this; consumers could remain
sceptical about investing.
To build lasting consumer confi dence
and stimulate a widespread commitment to
the installation of solar and biomass heating
systems, the government must commit to a
long-term renewable energy strategy beyond
its existing pledge of variable fi nancial
incentives.
Payback longevity remains uncertain
Our main challenges are poor consumer
awareness of the environmental benefi ts of
renewable technologies and scepticism over
the longevity of incentive schemes. If the
UK is poised for a heating revolution then
the government must do more to address
these doubts and promote renewable heat as
a benefi cial alternative, both fi nancially and
environmentally.
Cost undoubtedly remains a key driver
for consumers considering how to heat their
homes. Biomass and solar technologies
typically incur greater capital costs than oil or
gas equivalents and payback schemes remain
important to ensure customers are able to look
past any high initial expenses. Gaining trust
in renewable heating will remain a challenge
unless we can offer assurance that incentives
will continue to offer support long term.
Government cuts to the Feed-in Tariff
subsidy for solar panels in 2012 resulted in a
reduction in solar installations, demonstrating
that consumers are more cautious when
investing in renewable energy if it is unclear
whether a payback plan will continue to offer
consistent levels of payback in future.
DECC’s quarterly degression of
domestic RHI tariffs is concerning as it
could increase the risk of consumers being
miss-sold installations with quotes based
on out-of-date tariffs. There is also the risk
that the government may in future consider
introducing a cap and such uncertainty
could discourage consumers from choosing
renewable heat.
Bigger picture: By relying heavily on fi nancial
incentives such as the RHI, we are overlooking
other positive marketing hooks such as the
environment, says Finian Parrick, managing
director of Zero Carbon Future
By focusing on
fi nancial initiatives, the
environmental reasons for
investing in renewables are
often overlooked
We must therefore, use the introduction
of the domestic RHI as an opportunity to
present the benefi ts of renewable heat as a
cost-effective and sustainable alternative to
ensure lasting confi dence.
Building an awareness of environmental
benefi ts
By focusing on fi nancial initiatives, the
environmental reasons for investing in
renewables are often overlooked. In our
fi ve years’ experience in the UK renewable
industry, we’ve witnessed growth in the
domestic renewable energy market and the
domestic RHI could boost demand further. Its
introduction means installers are now able
to advise homeowners exactly how much
they could earn as fi nancial payback through
a renewable energy scheme, but consumers
must also be convinced by the environmental
benefi ts.
Overall, Zero Carbon Future supports the
introduction of the domestic RHI as a positive
move towards creating more accessible
renewable energy for domestic users.
We remain confi dent that given the
right guidance from the industry and support
from the government, UK consumers will
gain widespread understanding of the
environmental benefi ts in renewable heat
technologies and not base their decisions on
the potential fi nancial rewards.
www.renewableenergyinstaller.co.uk | 19