The government has announced a new change to the non-domestic RHI (Renewable Heat Incentive), introducing new technologies to be covered by the scheme with new tariffs, which may affect existing participants.
The non-domestic RHI pays organisations for every unit (kWh) of useful heat produced using eligible renewable technologies. This counts towards the UK’s 2020 renewable energy target and helps reduce the nation’s dependence on polluting fossil fuels.
The second phase of the RHI scheme significantly increases financial support for eligible ground source heat pump (GSHP) systems, and now also includes air source heat pumps (ASHP).
Increased support will now be seen for:
- large biomass heat projects
- GSHP
- solar thermal
New support will be given for:
- air source heat pump
- deep geothermal heating
- biomass combined heat and power (CHP)
- biogas
These changes follow a two-year long campaign by a coalition of industry bodies to include air to water heat pumps within the scheme, with similar calls to improve the attractiveness of the GSHP tariff, thereby establishing a more level playing field for all renewable heating technologies.
Dave Sowden, chief executive of the Sustainable Energy Association, said:
“The introduction of new technologies and increases to various tariffs are to be welcomed for a number of reasons. We are particularly pleased with the introduction of air to water heat pumps, and the improvements to the ground source heat pump tariffs, as these follow significant efforts by the industry in building a strong case for these changes, and a willingness on the part of the Minister and his officials to listen and adopt early changes where a strong case exists for doing so”
Clyde MacVeigh, marketing director at Dimplex Renewables, said:
“The improvements to the non-domestic RHI scheme are good news for both renewables installers and to organisations looking for an answer to rising heating bills.
“The non-domestic phase of the scheme has suffered from the glaring omission of air source heat pumps since it was first introduced in 2011. It was a bewildering omission of a proven technology which is well suited to commercial retrofit projects, particularly in off-gas areas in place of oil or LPG.
“With the domestic scheme now finally under way, we are expecting a knock-on effect in the commercial sector as overall awareness of renewable heat technologies and their cost-saving capabilities increases. The Department of Energy and Climate Change (DECC) has listened to the industry and these changes, together with improved tariffs for other technologies including solar thermal, will only give added incentive for organisations to invest.”
Tony Bowen, president of the Heat Pump Association (HPA), said:
“This is a clear demonstration of the commitment and resolve of trade associations, including the HPA, to work with DECC for the continued development and extension of the RHI schemes.”