Yesterday’s spending review contained the Government’s financial plans for improved energy efficiency and renewable energy.  Although some detail is missing about how the measures will be achieved, the following points were made:

• Government will increase funding for the Renewable Heat Incentive (RHI) to £1.15 billion for the continuation of the scheme to 2021.
• £300 million will be made available to support up to 200 heat networks, allowing the heating of 400,000 homes equivalent.
• £295 million is to be made available over 5 years to improve energy efficiency of public sector buildings.
• Doubling of investment in DECC’s innovation programme to help deliver commitments to seed funding for new renewable technologies and smart grids.

Of course, as the Government strive for cost control and efficiency, it’s not going to be all plain sailing. The RHI is to be reformed to make sure it delivers improved value for money with the ambition to deliver £700 million of savings by 2021. This will undoubtedly mean more paperwork for applicants, lower tariffs for technologies that seemingly need less support and stricter penalties imposed and/or payments withheld for non-compliance.

As we progress through the coming weeks I am sure more detail will emerge; watch this space!