Much anticipated as a key element in its 2050 net zero ambition, the Government is seeking views on options for the future support for low carbon heat, beyond the Renewable Heat Incentive (RHI), which closes to non-domestic applicants in March 2021. This consultation sets out proposals for:
• a Green Gas Support Scheme: increasing the proportion of green gas in the grid through support for biomethane injection
• a Clean Heat Grant: support for heat pumps and in certain circumstances biomass, through an upfront capital grant to help address the barrier of upfront cost
• budget control and financial management of the spending proposals for green gas and buildings technologies
The NFU, together with NFU Energy, has responded to this consultation from the Department of Business, Energy and Industrial Strategy (BEIS), which closes on 7 July 2020 - see our response here and also below. We were open to feedback from NFU members, especially those intending to install or supply feedstock to a large AD biomethane plant, and those interested in heating non-domestic buildings.
We believe that ambitious policies will be required to achieve a high level of decarbonisation of heat (domestic, commercial and industrial) consistent with the Government's net zero target, both off the gas network and through the gas network. While we welcome new policy measures that provide a degree of continuity and consistency with previous low-carbon heat incentives, we are disappointed at the modest level of ambition in both the Green Gas Support Scheme and the Clean Heat grants.
NFU members can read our consultation response here.