Consultation outcome

Future support for low carbon heat

This consultation has concluded

Download the full outcome

Detail of outcome

The government response to this consultation covers:

Having considered the responses to all 3, the government intends to proceed with the launch of the GGSS and GGL as detailed in the government response.

The response sets out decisions on the GGSS, including:

  • the approach to tariff length and tiering
  • tariff guarantees and commissioning windows
  • sustainability criteria for the scheme
  • financial mechanisms, including annual budget caps, tariff reviews, degression and capital costs data
  • interaction with other government schemes, including the Renewable Transport Fuel Obligation Scheme (RTFO)
  • eligibility criteria for biomethane producers

Decisions on the GGL are also set out in the government response and include:

  • the scope of the levy
  • frequency of levy payments and the collection of meter point data
  • impacts on bill payers
  • a comprehensive cost control framework
  • a robust compliance and enforcement package, including mutualisation, financial penalties, interest rates and public reporting
  • the rationale for launching with a per meter point levy design
  • the intention to transition to a volumetric levy design as soon as feasibly possible

Detail of feedback received

This consultation received 167 responses relating to the Green Gas Support Scheme.

Of these, approximately 57 were from within the anaerobic digestion and energy industries and 11 were from members of the public. The remaining responses were from a mixture of academics, NGOs and think tanks, businesses, trade bodies, and other organisations.

The remainder of responses were directed primarily at the Clean Heat Grant, a response to which will be issued in due course.

We also received a set of 517 similar responses coordinated by environmental NGO Biofuelwatch.

In May 2020 we provided additional information on 2 proposals in the consultation in Green gas: ensuring value for money.

Original consultation

Summary

We're seeking views on options for the future support for low carbon heat, beyond the Renewable Heat Incentive (RHI).

This consultation ran from
to

Consultation description

Heating of homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions, and decarbonisation of heat is one of the biggest challenges we face in meeting our climate targets.

This consultation sets out proposals for:

  • a Green Gas Support Scheme (GGSS): 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
  • participant compliance

29 May 2020: ‘Green Gas: Ensuring value for money’ consultation section

We have provided further information on 2 proposals in this section:

  • requesting more detailed costing information
  • tariff review

We are working with devolved administrations to implement these proposals across Great Britain.

We have published the Impact Assessment to accompany these proposals.

Interaction with the Renewable Heat Incentive (RHI) schemes

In the March 2020 budget, the government announced:

  • an extension to the domestic RHI for a further year to 31 March 2022
  • the introduction of a flexible, third allocation of tariff guarantees on the non-domestic RHI. The non-domestic RHI will close to new applications on 31 March 2021

Alongside this consultation we have also published:

Please do not send responses by post to the department during the coronavirus lockdown period as we will not be able to access them.

Documents

Future support for low carbon heat

Impact Assessment

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Published 28 April 2020
Last updated 17 March 2021 + show all updates
  1. We have published the government response to this consultation.

  2. Further information added on 2 proposals within the ‘Green Gas: Ensuring value for money through tariff changes' section of the consultation.

  3. First published.