DECC confirms domestic RHI tariffs

Householders could be paid hundreds of pounds a year for generating renewable heat, after tariff levels for the domestic Renewable Heat Incentive (RHI) were published today.

DECC confirmed that the levels have been set at 7.3p/kWh for air source heat pumps, 12.2p/kWh for biomass boilers, 18.8p/kWh for ground source heat pumps and at least 19.2 p/kWh for solar thermal.

According to DECC, the scheme will drive forward the uptake of renewable heat technologies in homes across the UK to cut carbon, help meet renewables targets and save money on bills.

Energy Minister Greg Barker said: “The Coalition is committed to helping hardworking families with the cost of living.

“Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.”

Trade body, the Renewable Energy Association (REA), cautiously welcomed the news, but said it was disappointed that decisions on tariffs under the non-domestic RHI, due to be published alongside the domestic tariffs, have been delayed.

According to the REA, this means a number of the most cost-effective renewable energy projects currently in development, such as direct air heating from biomass, will have to be scrapped as investment decisions cannot be made on schedule.

REA chief executive Gaynor Hartnell said: “Whilst the intended start date for the technologies covered in the 2012 consultation, including geothermal and air source heat pumps, remains spring next year, developers still don’t know what the tariff levels will be.

“Nor has it been confirmed that all of these additional technologies will definitely be supported. This does not instil confidence and delays business planning.

“The REA is urging DECC to at least provide confirmation of which technologies will be supported under the second phase of the non-domestic RHI as soon as possible.”

Conor McGlone

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