Solar Thermal to stay in UK Renewable Heat Incentive

15.12.2016

The solar thermal industry will breathe a sigh of relief after months of uncertainty over the decision of the UK government to drop its plans of removing solar thermal from the Renewable Heat Incentive. The Solar Trade Association worked hard to prevent the removal.

Following a concerted effort by the Solar Trade Association (STA) the UK Government has dropped plans to remove solar thermal from the Renewable Heat Incentive (RHI). The STA provided convincing evidence and galvanized strong stakeholder opposition to the proposals during a consultation launched in March; 92% of respondents opposed the changes.

The STA is certain, that the reinstatement of solar thermal in the RHI means that there is a great opportunity for growth in a sector that already boasts some of the most advanced manufacturing in the world.

Furthermore STA points out that while a typical business user will be able to earn back the cost of their installation within seven years with the Incentive, without it the process would take 21 years. This means there would be no new investments. Retaining solar thermal will also help the fuel poverty alleviation agenda and the efforts to reach the Government’s own target of 12% renewable heat by 2020, as the organization points out.

The solar thermal heating will now remain in the RHI for domestic systems with no change from the current level of 19.74 p/kWh of support over seven years. Applications of solar thermal in industry up to 200 kW in size will also continue to be supported.

Philipp Kronsbein / STA

Similar Entries

A group of 21 organisations called on the British government to end the uncertainty and retain solar thermal in the Renewable Heath Incentive (RHI). In a letter sent to the minister for energy and intellectual property, Baroness Neville-Rolfe, representatives of the solar industry, local governments, manufacturers, housing providers, land owners and environmental groups said that the technology should not be excluded from the support scheme.

César Barahona and Christian Holter with the signed contract in front of the FairTrade products at the Weltladen store in Graz, where the press conference took place. (Photo: SOLID)

Solid, a Graz-based company specialising in solar thermal systems, has received an order for € 4 million to equip a hospital in Managua, Nicaragua, with a solar thermal plant for warm water heating and air conditioning. It is the first major project of this type being funded using a 'soft loan'*.

 IEA SHC publishes 2016 Edition of its seminal report “Solar Heat Worldwide” (Photo: IEA SHC)

The International Energy Agency, Solar Heating and Cooling Programme (IEA SHC) released the 2016 edition of its report on the global status of the solar thermal heating and cooling market. It includes data from 61 countries resenting over 95% of the global solar thermal market and for the first time data on solar thermal cost and levelized costs of heat.

Thermax, an Indian energy and environment company and FRENELL, a German concentrated solar power company, (through its wholly owned subsidiary Novatec Solar Espana, S.L) have been awarded by India’s state owned utility NTPC, to execute Asia’s first integrated solar thermal power plant at Dadri in Uttar Pradesh, India. The project involves the integration of a concentrated solar field into the Dadri coal fired power station. The ground breaking ceremony was celebrated on Friday, 4th of November 2016. The completion of the project is scheduled for September 2017.