The Renewable Heat Incentive (RHI) consultation is now complete and the government have confirmed that all changes will come into effect from 1st April 2017.
Domestic Biomass Installations:
The RHI tariff for Biomass will be increased to 6.44 pence per kilowatt hour (pence/kWh) which was the rate available between October and December 2015. With Biomass boilers, you are paid the combination of space and hot water figures on the Energy Performance Certificate (EPC).
From 1st April 2017, the heat demand will be limited to 25,000kWh per annum and this will see maximum payments received through the RHI for the 7-year period of £11,270. We don’t expect to see a huge difference to the sales of biomass boilers as interest in Biomass has waned because of the installation of cheap unreliable boilers, but if you are looking for a high-quality reliable system please call as we still have access to the better Austrian boilers.
Domestic Ground Source Heat Pump Installations:
The RHI tariff for Ground Source Heat Pumps (GSHP) will remain virtually unchanged, except for the introduction of a heat demand limit of 30,000kWh per annum, that means the maximum financial figure received through the RHI for the 7-year period will be £41,055. We expect GSHP sales will remain attractive for larger properties with lots of garden space and some new builds.
Domestic Air Source Heat Pump Installations:
Air Source Heat Pumps (ASHP) will see the biggest changes. The ASHP tariff is jumping from 7.52p/kWh to 10.02p/kWh, as of 1st April 2017, but any applications before this date will receive the higher tariff when it comes into effect. With the new heat demand limit of 20,000 kWh per annum, the maximum payable from the RHI over the 7-year period is now £14,028.
As part of the new changes all heat pumps will require electric metering to monitor their performance and we are waiting for an update from our preferred manufacturers to see whether they will be supplying these to make their systems comply with the new rules.
This was the news the industry really needed six months ago, when Solar PV tariffs were cut significantly and Biomass tariffs had reduced to a figure that was no longer capable of supporting high quality installations. The new ASHP tariff is great news for new home developments and people with existing properties who will benefit from the increased RHI income and lowered fuel costs due to the efficiency savings with heat pumps.
Whilst the RHI is primarily aimed at households who rely on fossil fuels such as coal, electric storage heaters, LPG and heating oil, the higher tariffs will now also make it financially attractive for all ASHP and ASHP bivalent systems (where a heat pump runs alongside a conventional boiler). (Please click here for more information on heat pumps).
Eco Installer, Cambridgeshire’s Local Energy Efficiency Team
We welcome any enquires and questions regarding the RHI and the different technologies mentioned above, please give us a call on 01353 669000 or e-mail us at [email protected].
You can see and hear a working air-to-water and an air-to-air heat pump, plus biomass boiler in action in our Sutton showroom. Please call to make an appointment before you travel.