Air Source Heat Pumps now have separate tariff under Non-Domestic RHI

Air Source Heat PumpThe DECC?s Government response document ?Non-Domestic Renewable Heat Incentive: Improving support, increasing uptake? sets out a range of improvements and increased support under the non-domestic Renewable Heat Incentive (RHI).

Air source heat pumps (ASHPs) are among the commercial heating renewable technologies that will benefit from this increased support.

The aim of the Non-Domestic RHI scheme is to bridge the gap between the cost of fossil fuels and renewable heat alternatives, by providing financial support to business who install renewable technologies like ASHPs.

Low uptake from businesses has led to the Government re-examining the scheme?s financial rewards, to make it even more attractive to investors and help the market to grow.

New tariffs for commercial ASHPs

The new tariffs to be paid to commercial owners of ASHPs will be 2.5p/ kWh for all the heat generated by the ASHP  (subject to Parliamentary and State aid approvals).

Other changes to the non-domestic RHI

Key features of the proposed changes to the non-domestic RHI are:

  • Increased support for GSHP?s from up from 4.8p to 8.7p from April 2014
  • An increase in support for renewable CHP, large biomass boilers (over1MW), deep geothermal, ground source heat pumps, solar-thermal and biogas combustion;
  • New support introduced for air-water heat pumps and commercial and industrial energy from waste;
  • An evolved approach to budget management, using improved market intelligence to allow credible growth rates across the range of renewable heating technologies supported, whilst ensuring that the scheme remains affordable and achieves value for money

For free advice about the non-domestic RHI, Air Source Heat Pumps and Energy Efficiency Financing, please contact your local EnergyMyWay regional director.

By: Louisa Stockley