Greg Barker Revises RHI rates for GSHP installations
from 21 January 2013
Ground Source Heat Pump RHI tariff expected to double
After many months of GSHPA lobbying of DECC, including a meeting with Greg Barker on 17 December 2012, DECC has announced on 21 January 2013 that:
"particular concerns have been raised about the very low uptake of RHI for ground source heat pumps and some of the assumptions underpinning the current tariffs.
Emerging evidence suggests there may be differences between actual costs and load factors of installations and the original assumptions used to calculate the current tariffs. After the work has finished a summary of the findings will be published.
Following the outcome of this work, if the evidence demonstrates that the initial assumptions and cost data need to be updated, subject to value for money considerations and the necessary approvals, DECC will consider proposing tariff changes for new installations in the Spring. It is DECC's intention that where tariffs increase as a result of this work, installations accredited from today (21 January) would benefit from that increase once the new tariffs come into force".
The GSHPA had already presented DECC with robust evidence that supports an RHI for ground source heat pump installations of 9.4 pence/kWhour. The original RHI tariffs for ground source heat pumps were:
- Owners of GSHP systems up to 100kW rated capacity received RHI at 4.7 pence/kWhr
- Owners of GSHP systems over 100kW rated capacity will received RHI at 3.4 pence/kWhr
GSHPA welcomes the news that DECC is now able to recognise that the rates for GSHP installations will change and be effective from 21 January 2013. This will allow ground source installations to be installed and allow the RHI to achieve some of its most basic aims.
See the DECC announcement of 21 January 2013.
See the GSHPA Press Release of 24 January 2013.
Timing of changes
The commitment of the Minister, Greg Barker, to increasing the tariffs for the Commercial RHI for GSHPs has repeatedly been made clear, including in Greg Barker's video address to the Ground Source Heat Pump industry on 27 March 2013. He has also confirmed that the increases will take effect from 21 January 2013.
However, DECC officials have not yet announced the increases, pleading that they need more time to research information. Full and extensive information was provided to DECC in 2012 and it is very clear that the information that DECC used to arrive at the initial RHI tariffs for GSHPs in 2011 was seriously flawed.