Changes to renewable heating incentives to drive installation figures

Published:  04 October, 2017

The Renewable Heating Incentive (RHI) payment was introduced in 2014 with the aim of encouraging more homeowners to install renewable heating solutions in their homes.

With payments attributed to over 53,000 properties since its inception, the Government is on target to increase this number along with awareness of the scheme by having raised the incentive payment.

“The implementation of this new RHI tarrif uplift is great news for consumers and the renewable industry as a whole. It reinforces the Government’s commitment to driving forward renewable energy as a very real alternative to oil and LPG in particular,” said Phil Hurley Managing Director NIBE Energy Systems.

“It goes without saying that installers, specifiers and heating industry professionals have been, and remain, critical to the success of engaging the British people to choose renewable energy systems wherever possible.”

The RHI payments were introduced to incentivise consumers into choosing a renewable energy heating system such a Ground Source or Air Source Heat Pump with the homeowner receiving a fixed sum payment from the government for a fixed period of seven years.

To further drive this forward, and to meet sustainable energy targets outlined by the government, tariff uplifts have been applied for Ground Source Heat Pumps, Air Source Heat Pumps and Biomass whilst Solar will remain the same.

The RHI scheme was the first of its kind in the world with the aim of making a significant contribution to the 2020 ambition of 12% of UK heating being generated from renewable sources as opposed to more typically conventional sources.

Ground Source Heat Pumps will see payments rise from 19.64p/kWh to 19.86p/kWh whilst Biomass Plant systems will see an increase of 2.26p/kWh. Air Source Heat Pumps enjoy the most significant financial benefit with changes from 7.63p/kWh to 10.18p/kWh an uplift of 2.55p/kWh. These changes demonstrate to installers the ongoing benefits of renewable energy heating systems for consumers and the financial benefits that it can bring by looking at alternative solutions.

Such changes in the RHI payments will only serve to incentivise consumers who reside in off grid properties or who have a genuine desire to find a renewable energy system for their home unlocking the potential of this niche sector of the UK heating industry and driving growth and prosperity.

Phil Hurley said: “Whilst the future of the renewable heating industry remains a little uncertain as the impacts of leaving the EU are as yet unknown, it is still pleasing to see these tariff uplifts come to fruition which were outlined as part of the fifth carbon budget last year. These tariffs will help us to meet the government target to cut emissions by 57% by 2030, and highlights the significant impact renewable heating technologies will have on achieving this.

“By introducing these changes the government appears to be supporting both the Renewable Heat Incentive and renewable heating technologies in the UK. Further commitment will be needed to support the challenge of installing 6.8 million domestic heat pumps by 2030 but, as a huge advocate of the British renewable heating industry, we remain committed to ongoing product development and installer training to assist in meeting these targets.”

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