In its first year of operation, the domestic Renewable Heat Incentive (RHI) scheme has failed to attract sufficient support, says OFTEC.
Latest statistics from the Department of Energy and Climate Change (DECC) show just 11,149 new renewable installations have been completed since the RHI launched in April 2014 – that’s less than 1,000 per month.
OFTEC has calculated around 10,800 installations would be needed every month to reach the government’s goal of 750,000 installations by 2020.
OFTEC director general Jeremy Hawksley said: “Current take up of the RHI is falling way behind the targets DECC set out in its initial impact assessment and just serves to highlight the considerable failings of the scheme which OFTEC anticipated from the outset.
“The high upfront costs of installing renewable technologies, which are typically between £9k and £14k, are prohibitive for all but the wealthy few. Even with RHI incentive payments, most people simply can’t afford to take up the scheme, even if they want to.
“Exacerbating the low take up of the RHI is also the complexity of both the application process and the practical issues involved in installing renewable technologies.”