Performance comparison of UK domestic renewable incentives

The UK has introduced two schemes that incentivise the adoption of domestic-scale renewable energy technologies (RETs), specifically the feed-in tariff (FiT) and renewable heat incentive (RHI). Both policies offer householders who install RETs a payback tariff based on the quantity of renewable energy they can produce and were introduced in the context of UK’s 2050 carbon reduction targets. A dual method is used to analyse the differing adoption under both schemes and reasons for it. First, registration data are analysed to assess impact in terms of stimulation of RET adoption in the domestic setting. Second, agent-based models are used to simulate adoption under both schemes and test the impact of non-financial factors on the rates of adoption. Results of the analysis and models are combined to give insight into differing rates of adoption. The paper concludes that factors beyond pure financial considerations have significant effects on rates of adoption, with the FiT stimulating far more adoption of rooftop photovoltaics than the RHI has stimulated adoption of heat pumps. It is recommended that policymakers take account of these non-financial factors when designing policy to encourage adoption of technology necessary for smart low-carbon future energy systems.