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HPA backs new RHI scheme reforms

The Heat Pump Association (HPA) has broadly welcomed yesterday’s release (14th December) of the Government’s intended reforms to the Renewable Heat Incentive (RHI) scheme in Spring 2017.

HPA president Mike Nankivell said: “Considering there was a genuine risk to the continuance of the RHI scheme due to Brexit, Government changes and the state of the economy, this has to be seen as a largely positive outcome.

“We are pleased to see that Mandatory Heat Metering will not be introduced and feel the three papers we presented to DECC/BEIS outlining reasons why this should not be introduced and what could replace the proposal had a very large impact. The tariff increase for ASHP (10.02 p/kwh) will help to counterbalance the new total gross heat demand limit of 20,000, with the result that any application under 26,700 kWh, from Spring onward, will be better off under the new scheme. The larger heat demand limit of 30,000kWh for GSHP will assist to offset the more modest rise in the tariff to 19.55p/kWh.”

Mr Nankivell continued: “We are pleased to see that our hard work over two years, discussing the possibility of Tariff Guarantees for larger projects in the Non-Domestic RHI scheme has been rewarded. We also welcome the limit for GSHP set at above 100kWt since we were at the forefront of advocating that the GSHP threshold should be reduced from the 500kW and above limit. Importantly, the HPA also worked closely with other Trade Associations over Summer/Autumn 2016 to lobby BEIS in relation to the RHI reforms.”

He added: “In her speech announcing the reforms, the Minister for Energy, Baroness Neville-Rolfe, made a number of supportive comments regarding heat pumps, for example, “Certainly the UK, where winter temperatures are mild by the standards of most northern latitudes, seems well placed to make use of the (heat pump) technology. Heat pumps can also improve people’s quality of life. Compared with an oil boiler they are better for air quality and are more convenient, with no need for fuel deliveries.

“Such observations can only strengthen our case for increasing renewable heating solutions through the application of heat pumps,” Mr Nankivell concluded.

Details of the RHI reforms can be found on the HPA website: www.heatpumps.org

15 December 2016

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