Wednesday 21 December 2016

Does the RHI increase signal the end of the gas boiler?? Renewable Heat Incentive Breaking News

The Department for Business Energy and Industrial Strategy has just announced some significant changes to the RHI. The full consultation response was published yesterday but the highlights are as follows:
  • The Air Source Heat Pump RHI will increase from 7.51p to 10.02p, an increase of 33% 
  • Biomass RHI will increase from 4.21p to 6.44p, an increase of over 50% 
  • Solar thermal remains eligible for Domestic RHI but no change to the rate of 19.74p/kWh, although only until 1st April.
  • AND IMPORANTLY - Although the new rates don't take effect until 1st April 2017, any install between now and then will automatically move on to the higher rates in April. 
There is a cap on the total heat claim for biomass of 25,000 kWh and 20,000kWh for heat pumps. The caps only apply to installs registered after April, so properties with heat losses higher than the caps would be advised to have an installation completed ASAP.

We think these changes prove that the Government is committed to helping properties move away from carbon intensive heating systems such as mains gas. In particular the improvement to the RHI for air source heat pumps is very significant and will help to bring the technology into the mainstream.

While an Air Source Heat Pump is only marginally cheaper to run than a mains gas boiler there are other important benefits, such as:
  • Our calculations indicate that an average 3/4 bedroom property should expect the RHI to pay for the full cost of installation over 7 years with some money left over to put towards heating costs.
  • Houses with Solar PV can expect the solar to contribute towards a proportion of the heating costs in Summer, Spring and Autumn. A reasonable contribution from a 4kW PV system would be between 7-10%.
  • Heat pumps are a time served reliable technology which are arguably safer than gas boilers due to no production of carbon monoxide or risk of explosive gas leaks.
  • Houses with electric cooking facilities can disconnect the supply and stop paying gas daily standing charges.
Thank you for taking the time to read our newsletter, more information on our products and services can found on our website www.ctsrenewables.co.uk or you can call our office on 01623 422254.

Kind Regards


Matthew Baxter 

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