The RHI is a government incentive to provide support to those who install renewable heating technology. The domestic RHI was introduced in April 2014
RHI Tariffs are reduced as spend on the scheme reaches certain ‘triggers’ with each type of renewable heating technology, Biomass, Air Source, Ground Source and Solar Thermal having its own trigger before it is reduced.
The government has given notice that biomass RHI payments for new applications will be reduced for the second time this year. From 1st July 2015 biomass approved installations will receive the reduced tariffs as the amount spent has hit a ‘super trigger’ point.
It is thought the reason biomass has hit its triggers earlier than the other renewable heating technologies, is due to slightly cheaper installation costs. However it should be noted that all options do have ongoing costs.
Air Source (ASHP) and Ground Source Heat pumps (GSHP) in many ways more suitable option for domestic applications, as you do not need to purchase fuel pellets or have the inconvenience of filling a hopper with pellets. Air source and ground source heat pumps use electricity to power them.
New applications – current and future tariffs per kWh
Applications Submitted Biomass ASHP GSHP Solar Thermal
01/04/15 – 30/06/15* 8.93p 7.42p 19.10p 19.51p
01/07/15 – 30/09/15 7.14p 7.42p 19.10p 19.51p
*these tariffs were adjusted in line with RPI.
Heat pumps and the RHI
There is still time to benefit from the RHI by installing a heat pump, as neither air source nor ground source heat pumps are not expected to hit their degression points for some time.
There are many advantages to consider when installing a heat pump, they save money because they are cheaper to run compared to, direct electric heating. This is due to their efficiency, Air source heat pumps run at 300% efficiency and ground source heat pumps at 400% efficiency, therefore saving you money.
When considering carbon emissions, heat pumps produce significantly less than burning oil, gas or LPG.
It is also worth mentioning that if you have the space for a ground source system, the planning authorities like them as they are safe, silent invisible heating systems with low environmental impact.
Ground source heat pumps are more expensive to install than air source heat pumps because of the need to install ground collectors or bore holes. However, this connection to the ground is what enables a ground source heat pump to perform much more efficiently than an air source heat pump as temperature is fairly constant even as little as 1.2 meters down.
We have installed an air source heat pump in our own showroom in Norwich. Come and see the technology in action – and see what you could save in fuel costs over time.
If you would like to make an appointment to come and see the products we supply and discuss how they could meet your needs, the showroom is open from 7.30am – 5.00pm Monday – Friday and Saturday is by appointment only. Call us on 01603 898904 to book an appointment.