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Daikin MD: Government must push ahead with domestic RHI

Daikin UK managing director Peter Verkempynck has called for the government to push ahead with the domestic RHI to meet carbon reduction goals.

Mr Verkempynck added that the move will also deliver investment returns, employment opportunities and the growth of the renewables industry.

At a keynote speech at the Micropower Council’s Summer Reception in front of energy minister Greg Barker, Mr Verkempynck called for the government to drive forward with the RHI as soon as possible and said that “stop-start” policies had resulted in missed opportunities.

Mr Verkempynck said: “I am sad to say that Q1 of 2012 was the fourth consecutive quarter  in which we saw a significant slowdown in market growth, despite Daikin’s and other manufacturers’ substantial commercial efforts.

“There is of course the wider economic pressure, but I am sorry to have to say that our sales teams’ most reported difficulties are policy related.

“Most detrimental for a long term and sustainable market development is the stop-start effect we are currently experiencing.

“Whilst RHPP phase 2 and its increased funding in such austere times – £18m increase in total across social housing and community projects – are of course welcome developments, the specific details of the scheme simply came too late to maintain the momentum of RHPP phase 1, and the compliance requirements of phase 1 were so onerous that the scheme seriously under-spent its budget.”

He continued: “What should have been a serious boost for industry in terms of greater sales, and for government in terms of delivering greater renewable heat deployment, greater levels of monitoring and better understanding of the technologies, has become something of a missed opportunity on the road to 600,000 installed heat pumps by 2020.”

The Daikin UK MD went on to say that the next step must be to ensure intensive dialogue between the industry and the DECC and ensure that lessons are learnt from RHPP phase 1 and the current status of RHPP2, in order to make sure that systems facilitate learning and pave the way for more effective and consistent support of the renewable heat technology market.