Biomass firm Innasol has called on the UK government to extend its commitments to the Renewable Heat Incentive if it is to reach its goal after last week’s degression.
The tariff for commercial biomass installations up to 200kW in size degressed a further 5% last week to 4.18p/kWh, taking the total degression from its initial rate of 8.8p/kWh in November 2011 to more than 50%.
But while the degressions have been stipulated Silvio Spiess, chief executive at Innasol, said further degressions were “disappointing” given how the continuing low prices of oil and gas were serving as a barrier for the renewable heat market.
“The Renewable Heat Incentive has been the government’s strategy to encourage adoption of green, affordable renewable heating technology, and it has proven effective. However, the continuing low oil and gas prices are proving a significant barrier to uptake of renewable heating technology.
“As a result, the renewable heating industry requires further governmental commitment to achieve its goal: to take the UK closer to our renewable energy targets,” Spiess said.