The Ground Source Heat Pump Association (GSHPA) is renewing its call for DECC to conclude deliberations around a revised Renewable Heat Incentive Phase One non-domestic tariff without further delay.
Introduced in November 2011, phase one of the Renewable Heat Incentive is designed to support the installation of a wide range of renewable heat technologies into commercial and industrial buildings. The latest figures from Ofgem reveal that the scheme is failing to deliver the required deployment, with only 232MW of installed capacity accredited during the first 15 months. As a result, just £5.38m has been awarded to accredited system owners, with only 1.2% being allocated to GSHP installations.
GSHPA ceo, David Matthews, said: 'Whilst we were pleased that DECC officials acknowledged in January that they were minded to increase the tariff, the subsequent delay in any announcement is continuing to cause huge concern amongst members. It is now clear that the evidence submitted by both the GSHPA and DECC's independent consultants supports a significant uplift in the tariff so it is vital that government moves quickly to correct the current market distortion'.
According to Matthews, interest in ground source heat pumps has fallen significantly because the current tariffs don't provide the return on investment proposed by DECC.
He continued: 'DECC has failed to deliver a tariff that stimulates demand. The versatility of ground source installations, not least the ability to provide both heating and cooling, as well as the diverse nature of the UK's geology, has made the setting of a single tariff to incentivise all installations somewhat complex.'
'That said, DECC has been slow to acknowledge that market feedback has revealed a very definite problem. We remain available to support their work.'
