Heat Pumps

• 20 year long term tariff support to Industry, commercial and public sector eligible technologies that have been installed since 15th July 2009.
• Technologies included; solid and gaseous biomass, solar thermal, ground and water source heat-pumps, on-site biogas, deep geothermal, energy from waste and injection of biomethane into the grid.

• £15 million of Renewable Heat Premium Payments for the domestic sector.
• Likely technologies to be included; biomass boilers, solar thermal, air source heat pumps, ground and water source heat-pumps.

• Full system of domestic RHI payments available to eligible technologies that have been installed since15th July 2009.
• Consideration of introduction and support for a number of other technologies and fuels which are not supported from the outset.

* Source- DECC Web-site 10 March 2011, RHI- Press Notice: 2011/023- TO BE FINALISED MAY 2011.

Long-term tariff support will be targeted at the big emitters in the non-domestic sector.

• All Public sector; anything from a pub to a public library, a school to a power plant will be eligible under the RHI to install Ground Source heat pumps.
• District heating projects will also be eligible, provided a single installation is providing heat to more than one house.
• The tariffs will be paid quarterly for 20 years to eligible technologies that have installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced.
• Fixed level of installation support with annual inflation adjustments.

Industry, commercial and public sector - Heat Pump Tariff

• Up to 25,000 installations from July will be supported by a "RHI Premium Payment" to help people cover the purchase price of green heating systems. Those taking up the Premium will then be eligible for a RHI tariff from October next year when the Green Deal begins, as will anyone else who has had eligible equipment installed from July 2009.
• The "RHI Premium Payment" will be worth around £15m and will ensure there is a fair spread of technologies across all regions of Great Britain. The installed technologies will be monitored to enable government, manufacturers, installers and consumers to better understand how to make sure householders get the most out of them.
• Details of the "RHI Premium Payment" and how this will apply will be announced in May this year.
• There will be clear eligibility criteria in order to qualify for a Premium payment, including:
  • A well-insulated home based on its energy performance certificate.
  • Agreeing to give feedback on how the equipment performs.
  • A key focus of this initial phase will be on people living off the gas grid, where fossil fuels like heating oil are both more expensive and have a higher carbon content.

Likely levels of support for RHI Premium Payments*

• RHI tariff payments will start for homes alongside the Green Deal from 2012 to allow a more whole-house approach to heat production and energy saving.
• Consultation on the RHI tariffs that will apply from October 2012 will be published later in the year
  With £860 million* of funding now catered to the RHI, the Heat Pump market is projected to increase significantly by 2020...
• Installations are forecast to increase from a current level of 14,000 heat pumps this year to a level of over 50,000 units per year by 2015...
• By 2020 it is projected that 25% of the UK's Commercial & Public Sector heating requirements will be satisfied by Renewable Heating products and the vast majority are forecast to be heat pumps as they provide the only practical, cost effective & standalone RHI eligible heating system....can you afford NOT to be part of this growing market?

* Source - DECC Web-site 10 March 2011, RHI - Press Notice: 2011/023 - TO BE FINALISED MAY 2011