Seven times as many accredited installers needed by 2020 according to PwC report
The number of installers of renewable heat systems will need to increase seven fold by 2020 if government targets are to be met, a study by PwC has found.
The Department of Energy and Climate Change (DECC) predicts between 500,000 and 600,000 renewable heat installations will take place by 2020, which PwC said was 鈥渞ealistic鈥�.
However, the PwC report, Turning Up the Heat, said there needed to be a significant upturn in the number of accredited installers from just over 3,000 at the end of 2012 to nearly 22,000 by 2020 to hit DECC鈥檚 targets.
The Renewable Heat Incentive (RHI) scheme was designed to help drive uptake of renewable heat technologies and pays building owners a subsidy for the heat they generate from renewable sources, such as heat pumps or biomass. But its launch into the domestic sector has been delayed twice and uptake on commercial buildings has been slow. However, the report said it was unlikely the RHI would create many jobs, or provide a 鈥渧ibrant and sustainable industry鈥�, even if DECC鈥檚 predicted level of installations was met.
The report said it expected most of the accreditations would be for existing installers of other renewable technologies, rather than new entrants into the industry.
The study also said these targets could be exceeded if the government provided enough certainty to the industry. It said: 鈥淭here is [鈥 potential to deliver more than the projections. A key element would be avoiding the uncertainty of tariff changes that plagued the feed-in tariff scheme in its initial stages.鈥�
The report also said DECC may need to provide a 鈥渕ore substantial budget鈥� for the scheme to help the industry.
Daniel Guttmann, PwC director and specialist in renewable technologies, said industry confidence was 鈥渘ot high鈥� that the scheme would be successful.
鈥淭he qualifications are a key part of the installation and accreditation process, and low rates of take up could have knock-on implications for the rate of installation, competition on pricing and, ultimately, the UK achieving its target,鈥� he said.
A DECC spokesperson said: 鈥淲e are confident that the RHI will successfully incentivise the uptake of renewable heat technologies.
鈥淒ECC is currently finalising the details of the expansion of the non-domestic RHI scheme alongside the response to the tariff review consultation and will confirm the way forward in the autumn.鈥�
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