Government Announces RRHI Spring Tariff Revie

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Government announces RHI Spring Tariff Review

 

April 2013

RHI review spring 2013

The Government has this week provided an update on its Renewable Heat Incentive (RHI) schemes. At present DECC is carrying out a review of the tariffs under the non-domestic scheme to drive forward further uptake.

This follows a substantial underspend of the non-domestic RHI budget for 2012-13, where only around £24 million worth of RHI payments are expected to be paid out of a budget of £70 million. Large scale biomass (over 1 MW) and ground source heat pumps are in line for increases, and any installations accredited from 21 January 2013 will benefit from these increases.  DECC has also announced that it intends to leave other technology tariffs unchanged until April 2014.
 
In September DECC consulted on introducing new technologies into the scheme. These new technologies include air source heat pumps, biomass direct air heating, biogas combustion over 200kW, biomass and bio liquid CHP and deep geothermal. Direct air heating systems which are specifically designed and installed to use biomass could provide a valuable source of renewable heat for farming, and be used for operations such as drying corn, grain and herbs. Decisions on the inclusion of the technologies in the scheme and the final tariff levels will be announced in the Summer, in the Government’s response to the September 2012 consultation. 
 
Despite this recent announcement, there is no certainty that current RHI tariffs will remain unchanged next spring, so if you are considering an installation for one of the technologies currently supported, now is the time to act.  
 
The domestic Renewable Heat Incentive scheme, offering payments to homeowners who install renewable heat technologies, has been further delayed until Spring 2014 with details and tariff levels to be published this Summer. The scheme was originally intended to start in Autumn 2012, to run alongside the existing non-domestic scheme, which has been operating since November 2011. 
 
The delay has been blamed on ‘large volumes of data and evidence’ from DECC’s recent consultation on the scheme, but Energy and Climate Change Minister Greg Barker has said ‘we remain committed to introducing an incentive scheme for householders’. 
 
The domestic and non-domestic RHI schemes are largely targeted at those living off the gas grid, and therefore are of particular interest to farmers and rural communities.                                               
 
If you are considering a renewable heat installation or would like some further information on the RHI scheme contact Rebecca Seaman 01858 411219 or Dan Thory 01858 411226. 
 
Click here to read our information sheet on RHI.
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