The industry has said it is “cautiously optimistic” after Chancellor George Osborne delivered the first Comprehensive Spending Review of this Parliament.
REA said it has “long been concerned” about the government’s enduring commitment to the renewable industry following a series of cuts since the new administration took over in May.
But it said the government statement today “communicates that it remains committed to meeting its 2020 targets.”
A spokesman said the industry body is “cautiously optimistic” that the renewable heat industry will remain supported, but more detail is needed.
REA chief executive Nina Skorupska said: “We welcome the government’s commitment to renewable heat and pleased they have listened to industry and our members, but the devil will be in the detail.
“Our members recognised the need to make savings and presented to Treasury and DECC how we could optimise the RHI budget. A £700m cut is large, but we look forward to working with the government on reforming this crucial area.
“We still have a large challenge in hitting our renewable heat targets, and the RHI alone won’t achieve it, heat networks, energy efficiency and Green Gas still have a large part to play.”
Scottish Carbon Capture and Storage said it thinks overall the message to renewables industry was “sensible”.
Director Stuart Haszeldine said: “Delivering secure electricity on demand at a reliable price can be uniquely achieved through carbon capture and storage. The UK is the world’s best country in which to do that. Overall, the Chancellor’s speech offers excellent and sensible support to maintain the research budget needed to fully realise CCS and other low-carbon innovation.
“Research is one of the UK’s most successful industries and we welcome the increased investment in Catapult Centres and the enabling of company support to Innovate UK partnerships, which help commercialise the UK’s research and development.”
Ashurst law energy partner Antony Skinner said: “There is a crumb of good news for renewables, with confirmation that the RHI is not being axed but the big question that the government has not answered today is the date of the next CfD allocation round and how much money will be made available for it.
“The announcement of more funding for nuclear power research is good news for the nuclear industry.”
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Industry ‘optimistic’ on gov plans
Renewable leaders warn 'devil is in the detail' with Spending Review
By EBS