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During the Spring Budget yesterday, the Chancellor announced a number of changes to the renewables and clean energy sector in a continued effort to meet the NetZero carbon target by 2050. Here are the relevant highlights.

  • The Government will extend the Domestic Renewable Heat Incentive (RHI) for a year to 31st March 2022 meaning that projects which would have missed the 2021 cut off will now have another year to get onto the seven-year scheme. If your project was due to miss the previous deadline, get in touch with our team for more information.
  • The Budget will also introduce a third allocation of Tariff Guarantees under the Non-Domestic RHI from 31st March 2021. However, the budget statement on this is ambiguous and we are waiting for the Government to clarify. We will provide a further update when we know more.
  • The Climate Change Levy (CCL) for businesses will be frozen from 2022 for electricity used and increased for natural gas to £0.00568/kWh in 2022-23 and to £0.00672/kWh in 2023-24. This represents the overall decrease in carbon emitted through electricity generation as more renewable sources come online.
  • There will also be a total of £100 million of funding for 2022/23 and 2023/24 for grant-funding for households and small non-domestic buildings to install heat pumps or biomass boilers. There is no further information on this available at the moment, but it is encouraging that there will be some form of replacement in place for when the RHI ends in 2022.
  • From 2022 to 2025 there will be £270m of funding for a Green Heat Network Fund which will follow on from the Heat Network Investment Project. The scheme will ensure that new heat networks will adopt the most cost-effective low carbon heat sources and will avoid locking in gas generation in the sector.

You can find more information on the outcome of the Budget here: https://www.edie.net/news/11/Clean-transport--CCS-and-biodiversity-championed-in-Budget-2020/

If you want to know how this may affect your project, call the consultancy team on 01293 821 345

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