Tesot refrigeration

Kensa managing director addresses RHI changes

The Government recently published Statutory Instrument 2017 857, detailing select changes to the Renewable Heat Incentive (RHI) which are due to come into force on September 20 this year.

In response, Kensa Heat Pumps' managing director, Simon Lomax, has issued a statement. 

Mr Lomax commented: 'The most critical change is the introduction of ‘caps’ (Regulation 15) which will limit tariff payments for ground source heat pump (GSHP) installations with an annual heat demand exceeding 30,000kWh/year.

'As a consequence, for installations at properties with an annual heat demand above this 30,000kWh threshold, there is a financial advantage if the RHI application is submitted to Ofgem before SI 857 comes into force.

'Unfortunately, that leaves little time to conclude the installation and RHI application work.

'To be clear, the introduction of heat demand caps was expected; it was clearly communicated in the Government’s December 2016 response to the RHI consultation and was included in the draft RHI regulations which were published in the Spring. Industry just expected the Government to adopt a different approach to the implementation and provide more notice.

'As background, all the proposed changes to the domestic RHI were included in a single Statutory Instrument that was published in the Spring. At the time, Government advised the Statutory Instrument would come into force after processing through Parliament, a process that was estimated to take around six to eight weeks. Shortly afterwards, and without any explanation Government withdrew these regulations.

'It is now clear Government is taking a different approach and splitting the changes amongst two (or more) Statutory Instruments with the first having a swifter implementation period. This will impact some installations unexpectedly and we apologise for any issues. Government, no doubt, will argue that the implementation date is well beyond the original schedule so the market can have few complaints but that is rather missing the point. The Government needs to communicate clearly so those engaged in the renewable heat sector can share accurate and up-to-date information with customers.

'The key point is the clock is now ticking and the schedule for the introduction of heat demand caps has been set.'

The Statutory Instrument can be found here: https://www.legislation.gov.uk/uksi/2017/857/pdfs/uksi_20170857_en.pdf

5 September 2017


Already Registered?
Not Yet Registered?
ACR News

Final Hackitt Review demands 'fundamental reform'

Industry has responded to the findings of the Independent Review of Building Regulations and Fire Safety, published today, as Dame Judith Hackitt declares that fundamental reform is needed to improve building safety and rebuild trust among high-...


Bob Smith bolsters Hamworthy Heating sales team

Boiler manufacturer and hot water specialist Hamworthy Heating has welcomed Bob Smith to the sales team for South and West Yorkshire, including Sheffield and Leeds....


Ideal Commercial Boilers Condensing Range Covers All Bases

Ideal Commercial's Condensing Boiler range provides you with an almost unparalleled span of models and outputs. Featuring wall hung, floor standing, modular and pressure jet boilers with outputs from 30kW to 1450kW, there's an Ideal Commercial boiler suitable for most projects, many with FREE Commissioning.
Heating & Ventilating Review is the number one magazine in the HVAR industry. Don’t miss out, subscribe today!
Subcribe to HVR


Sales Agent (UK-based)

Italian-certified OEM company, specialising in brass fittings (turned or hot-forged), is looking for an experienced UK-based sales agent to run the UK market....