Confirmation of domestic RHI tariffs gives 'green light' for market growth

Published:  12 July, 2013

Today's announcement from Department of Energy & Climate Change (DECC) confirming tariff levels for the domestic Renewable Heat Incentive (RHI) has been largely welcomed by industry.

Today’s announcement from Department of Energy & Climate Change (DECC) confirming tariff levels for the domestic Renewable Heat Incentive (RHI) has been largely welcomed by industry.

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.

Energy & Climate Change minister Greg Barker said the announcement sent a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector and stressed that Government remains committed to opening the scheme for applications in Spring 2014.

“This marks a major milestone in achieving our renewable heat goals,” he 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.”

“Now that RHI tariffs are set, the industry has the tools it needs to go forth and educate the masses about the long term financial benefits of switching to renewable heat. This means installers can advise customers with confidence, which in turn will help stimulate uptake of renewables and ensure they can compete with conventional heating systems on the necessary widespread scale.”

However, Kensa's managing director, and Chairman of the Ground Source Heat Pump Association, Simon Lomax said: "Domestic RHI announcement made today, three and a half years after the initial consultation, and disappointingly short on detail."