Save more with RHI tariff increases

The UK Government has just announced changes to the RHI tariff which will be taking place from the 20th of September. There are some big increases for domestic projects to increase the take up of heat pump, solar thermal and biomass systems, and some important changes to commercial schemes.

The government confirms that “For heat pumps, the reforms will support growth in the size of the market and improvements in the quality of the supply chain. There will be increases in support for domestic heat pumps, to support growing installation numbers over the next four years and beyond.”

This is particularly good news for the Heat Pump and Biomass sectors.

NEW DOMESTIC RHI TARIFFS:

Air Source Heat Pump from 7.63p/kWh to 10.18p/kWh Heat Demand Limit under RHI: 20,000kWh

Ground Source Heat Pump from 19.64p/kWh to 19.86p/kWh Heat Demand Limit under RHI: 30,000kWh

Biomass from 3.85p/kWh to 6.54p/kWh Heat Demand Limit under RHI: 25,000kWh

Solar Thermal no change at 20.06p/kWh No Heat Demand Limit under RHI

Applications can be made from today at the new rates, though actual increased payments will be made from the 20th of September. Notably, though Heat demand limits are being introduced (see figures above), this will not disqualify properties with higher heat demands from applying to the scheme.

All new air source and ground source heat pumps will be required to have electricity metering. However, payments will continue to be made on the basis of the deemed heating requirements of the property (except for second homes and where a renewable heating system is installed alongside another heating system, in which cases payments will continue to be made on the basis of heat metering).

NEW NON-DOMESTIC TARIFFS:

Most of the changes are slight inflationary increases but the Biomass Plants tariffs are being simplified to one rate.

Air Source Heat Pump at 2.61p/kWh

Ground Source Heat Pump (Tier 1) at 9.09p/kWh

Ground Source Heat Pump (Tier 2) at 2.71p/kWh

Biomass CHP at 4.29p/kWh

Biomass Plants (Tier 1 <35% load) at 2.96p/kWh

Biomass Plants (Tier 2 >35% load) at 2.08p/kWh

Solar Thermal at 10.44p/kWh

Importantly, shared loop Ground Source Heat Pump systems in domestic properties, such as the Vaillant geoTHERM mini 3kW will be eligible for non-domestic RHI, in both new-build and retrofit projects.

Using the RHI and our HeatRHIght scheme, SBS is excited to now be able to offer up-front funding for heating systems in new-build properties through the shared loop ground source heat pump. Please see the following article for further details of this exciting scheme.