UK £270m Green Heat Networks Scheme, HNIP and RHI 1 year Extension

Date: 17 March 2020

In the recent UK Budget, the Treasury has committed £270m to a Green Heat Networks Scheme, and extended the Heat Networks Investment Project until 2022, with £96m confirmed for this year. This new fund will be accessible from 2022 until 2025, and will support the deployment of low carbon existing and new heat networks, in particular focusing on waste heat and other low carbon sources of heat.

The RHI has also been extended until 31 March 2022. BEIS has also committed to publishing more information on changes to the RHI schemes including the future of the Non-Domestic RHI, and will launch a consultation on future support for green gas.

The government will also support the installation of heat pumps and biomass boilers by introducing a Low Carbon Heat Support Scheme.

The CCL rates for gas have also been increased for the years 2022-23 and 2023-24, and the government has committed to consulting on a new Green Gas Levy on domestic properties to support biomethane production and the decarbonisation of the gas grid.

The ADE has been calling for funding support beyond the end of the Heat Networks Investment Project (HNIP), and certainty from the government about ongoing funding support since HNIP’s inception, particularly in light of pre-Budget post-RHI uncertainty. The ADE has also been calling for support from government to reduce the costs of low carbon generation on heat networks, and to support the use of waste heat.

In total, alongside the £320m government funded HNIP, this brings total government spend on heat networks up to well over half a billion pounds (don’t forget HNDU, too!)

By Charlotte Owen – Policy Officer, ADE