The largest take-up of the domestic Renewable Heat Incentive (RHI) has been in the south of England, according to a review from OFGEM.

Although the RHI is targeted towards off-gas grid homes, the report shows that almost 45.9% of households adopting the scheme are in the South, which has the highest concentration of homes connected to mains gas.

By contrast, in areas with a much higher percentage of off-gas grid homes, such as Wales and Scotland, far fewer homeowners have taken up the scheme – just 5.2% of the overall total in Wales and 16.5% in Scotland.

The figures are a concern according to OFTEC’s director general Jeremy Hawksley (pictured). “It’s no surprise that the highest take-up of the RHI has been in the most affluent parts of Britain,” he said. “These homeowners can afford to change and, with interest rates remaining low, the RHI is little more than an alternative investment opportunity that adds even more value to their properties.

“But what about the large percentage of off-gas grid homes that simply can’t afford to get started with the RHI? The government is pushing all off-grid homeowners towards the RHI in order to reduce their carbon emissions but, for most, the high upfront cost effectively excludes them. With almost 30% of rural households in England and 47% in Wales currently living in fuel poverty, this approach makes no sense at all.”

A recent survey conducted by OFTEC and Watson Petroleum of 750 oil-heated homes showed that just 4% would consider switching to an air-source heat pump while 73% would choose to upgrade to a new oil-condensing boiler.

OFTEC has been calling for the government to introduce a simple, all-inclusive boiler scrappage scheme, which it believes would go further than the RHI in helping the government achieve its carbon reduction target of 80% less emissions by 2050.

Mr Hawksley concluded: “The government needs to drastically reconsider its approach to low-carbon heat. Instead of pushing expensive, complicated schemes like the RHI, which will only appeal to the wealthy minority, it should look at where the real needs lie and introduce a realistic scheme, such as boiler scrappage, which would be feasible for the majority – even the fuel-poor.”