Renewable Heat Incentive – Commercial RHI
Owners of ground source heat pumps systems (and other eligible renewable heat technologies) installed since 15 July 2009, can apply to Ofgem to be paid 3.5 pence/kWhour of renewable heat generated for the next 20 years.
For all installations up to a capacity of 100 kW the RHI is increased to 4.8 pence/kWhour.
In the Phase 1 of the Renewable Heat Incentive, the RHI will be received by owners of non-domestic buildings for 20 years based on the metered heat delivered from ground source heat pumps.
The RHI tariff table below shows the technologies eligible for RHI Phase 1 and the subsidy received for each technology. The RHI provides a major incentive for owners to invest in ground source heat pumps and solar thermal renewable heat technologies. The tariffs are based on pence/kWh of renewable heat delivered. The grants vary with the technology and scale used as follows:
|Renewable Heat Incentive
|Ground source heat pumps||up to 100 kW||was 4.8, to be revised in Spring 2013 to 9.?||20|
|Ground source heat pumps||over 100 kW||was 3.5, to be revised in Spring 2013 to 9.?||20|
|Solar thermal||up to 200 kW||9.2||20|
|Solid biomass||up to 200 kW||8.6||20|
|Solid biomass||200-1,000 kW||5.3||20|
|Solid biomass||over 1,000 kW||1.0||20|
RHI rates published by Ofgem for year from 1 April 2013 – rates change with inflation each year.
DECC Consultation – RHI: Expanding the Non-Domestic Scheme
On 20 September 2012 DECC published a Consultation on expanding the Non-Domestic RHI to include the following additional tariffs from summer 2013:
|Renewable Heat Incentive
|Air to water heat pumps||1.7||20|
|Biomass direct air heating||"Small"||2.1||20|
|Biomass direct air heating||"Large"||1.0||20|
The closing date for responses to this DECC consultation was 7 December 2012. See GSHPA response to Consultation: Expanding non-domestic RHI
Call for evidence on ground source heat pumps
Paragraph 140 of the Consultation reads: "The existing tariff for ground source heat pumps has not brought forward the number of installations of this technology we expected. Discussions with the industry have indicated that this may be due to inaccuracies in our assumptions about costs, efficiencies and load factors of installations. We are issuing a call for evidence to verify our current assumptions."
An announcment was made by DECC on 21 January 2013 that the RHI rates for ground source heat pumps would be revised in Spring 2013 to allow ground source energy to make a contribution to reducing carbon emissions. See RHI GSHP Rates Revised.
Encouraging Energy Efficiency
It is already well known that basic energy efficiency measures in buildings, like insulation, save money and carbon emmissions. The Consultation considers whether DECC's desire to see additional Energy Efficiency should remain in the form of encouragement or should take the form of requiring evidence in the form of EPC or DEC certificates before RHI installations can be accredited.
A ground source heat pump provides an excellent method for providing emission free heating and avoiding further rises in energy bills, as well as attracting RHI, but they must be installed by an experienced contractor for the full potential to be realised.
Please verify if your contractor is a member of the GSHP Association.