NEA has four main recommendations for BEIS in their work to replace the RHI with a new mechanism after it ends in 2022.

NEA continues to support the agenda to eliminate the UK’s contribution to climate change by 2050 and appreciates that carbon pricing is a significant policy lever to meet this target. However, as the Government is considering the future of carbon pricing as the UK leaves the European we believe that there is an opportunity to ensure that future carbon pricing leads to fairer outcomes for domestic energy consumers and critically supports other cost effective and sustainable way to address these issues.

NEA commissioned this report to help stimulate debate on the policy options we must consider as we seek to decarbonise heat alongside delivering fuel poverty strategies across the UK. It helpfully draws out some of the tensions and challenges we face in changing the way in which we heat our homes, and the authors help us to consider the cost implications and distributional impacts of different funding mechanisms.