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Domestic RHI Tariff finally set

The Government has today announced the tariff levels for the Renewable Heat Incentive (RHI) for householders.
The tariff levels have been set at 7.3p/kWh for air source heat pumps; 12.2p/kWh for biomass boilers; 18.8p/kWh for ground source heat pumps and at least 19.2 p/kWh for solar thermal.

Minister for energy and climate change Greg Barker said: 'Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110 percent committed to boosting and sustaining growth in this sector.'

RHI domestic will support air to water heat pumps; biomass only boilers and biomass pellet stoves with back boilers; ground and water source heat pumps; flat plate and evacuated tube solar thermal panels.

DECC is currently finalising the details of the expansion of the non-domestic RHI scheme and will confirm the way forward in the autumn alongside the outcome of the tariff review. DECC's aim to introduce these changes from Spring 2014 remains unchanged.

Heat pump manufacturer Stiebel Eltron UK has welcomed the confirmation of new tariff levels for the domestic Renewable Heat Incentive.

Managing director, Mark McManus, said: “The renewable energy industry has been waiting a long time for this and we are encouraged by the strong tariff levels, which will give homeowners the confidence to look at heat pump technology as a viable heating option.

“The domestic RHI now gives a tangible incentive for householders who will get a solid return on investment for reducing their carbon output. In the past many people who had been considering renewable energy were sticking with traditional heating solutions such as oil and LPG due to the uncertainty of government incentive schemes – we hope this will now change.

“We do have a concern that the RHI will remain a fixed rate for all heat pumps and not necessarily reward the most energy efficient products. In our view, better performing systems should receive a better tariff – this would then incentivise homeowners to select the most energy saving and efficient products rather than a cheaper alternative.”

However, Mr McManus added that the RHI tariff will generate confidence among installers that green energy has a sustainable and long-term future.

General manager of Mitsubishi Electric's Ecodan range of heat pumps, John Kellett, said: “This is a clear statement of long-term intent from the Government which gives everyone confidence that the scheme will help the market grow in a sustainable and meaningful way.

“In particular, we are encouraged by the links with the Green Deal which will ensure that renewable technologies are only installed in properties that have been thermally improved to ensure that any renewable heat generated is not wasted.”

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12 July 2013


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