News: Analysis
General election countdown
To mark the nation going to the polls on 07 May, REI speaks to a selection of
manufacturers and suppliers to find out what items are top of the industry’s
wishlist for the next government
Tim McLeman, technical director, Wood Energy
Whilst government incentives might be expected to give business a boost, one of the biggest issues to dog
the renewables industry is uncertainty. The Feed-in Tariff is a prime example of good intentions gone wrong,
resulting in a culture of suspicion rather than optimism in the industry.
Then there was the Green Deal, which was badly thought out, poorly publicised, and so prescriptive that it
became a damp squib rather than the energetic kick start the retrofit sector so badly needs.
The RHI has been approached more thoughtfully and steadily, establishing the rate of demand in the non-
domestic sector first, before rolling it out across the board. However, with degression already squeezing the
margins, and a general election on the cards where all the bets are off, the industry could be forgiven for feeling a
bit twitchy about the future of the incentive driven market. Perhaps it’s time to look for a more reliable platform
for growth.
Guy Winterbourne, director, Eco Angus
Potential renewable energy customers will be looking for a consistent approach to the renewable heat
marketplace. Many product suppliers and installers feel that the marketplace has only just started to gain
momentum and feel that, if there are changes to relevant policies following the general election, it will send
out confusing messages. If clients are considering installing renewable heat products basing their decisions
on seven year tariffs (the domestic RHI) or 20 year tariffs (the commercial RHI) they will require the comfort of
knowing that these policies will remain in place over the relevant time periods.
If the renewable energy targets for 2020 and 2050 are to be achieved then there will be no place for
short-term decision making. It seems that each year we are faced with more and more irrefutable scientific
evidence of global warming so we need to take the opportunity to change things now.
Phil Hurley, managing director, NIBE
With the general election – and the prospect of a new government – just around the corner, the big question
for all of us in the renewables industry is: ‘What does this mean for the future of the RHI?’.
As a Labour initiative which was carried through to fruition by the coalition, the RHI is in the strong
position of having cross-party support from all three of the big political players. Now that the dRHI is in full
swing and uptake is steadily on the rise, at NIBE we’re confident that it’s here to stay – regardless of the
outcome in May.
That said, at the moment budgets for the scheme have only officially been confirmed until April 2016, so
the task for the next government is to provide clarity on financing and tariff changes beyond then. Depending
on the outcome of a consultation that’s currently underway, this may include the introduction of a new
funding initiative, where third parties would cover consumers’ upfront installation costs – receiving their RHI
payments directly in return. The RHI as it stands is a positive short-term driver, but third party financing would
make it more accessible and widen its appeal even further.
12 | www.renewableenergyinstaller.co.uk