The Department of Energy & Climate Change has set out a range of improvements and increased support under the non-domestic Renewable Heat Incentive following industry consultation.

Investment in renewables is reaching record levels and helping the UK to genuinely compete in the global race for green jobs and growth.

Phil Hurley, NIBE managing director has hailed the decision as well-deserved recognition of the vital role the technology will play in the UK's low-carbon future.

"The decision to include air source heat pumps in the non-domestic scheme represents long-awaited recognition of the unique benefits of this technology, and marks a much-needed step forward in the movement to cut emissions in the commercial sector”, he said.

“We are also pleased to see an increase in the non-domestic tariff for ground source heat pumps (GSHPs). While these have not reached the level suggested in the original consultation, increasing tier 1 payments to  8.7p/kWh will undoubtedly provide an important market boost. Heat pumps continue deliver high-performance results in commercial applications across the UK, and we look forward to seeing even more see positive results as the updated scheme rolls out.”

Also published today are further details of the domestic RHI, related to budget management policy, phasing of legacy applications and treatment of some types of subsidy, as well as confirming the tariff for solar thermal at 19.2p/kWh.