The Government recently published their consultation on increasing tariff levels for heat generated by ground source heat pumps, large biomass and solar thermal kit accredited under the Renewable Heat Incentive (RHI).
The proposed increase in tariffs follows on from a review of the evidence base used to set tariffs earlier this year. The increase is designed to amplify uptake of the technologies whilst ensuring value for money across all renewable incentive schemes.
The proposed new tariffs are as follows:
Installations with a date of accreditation on or after 21st January 2013 would, if the tariffs increase, receive payments at the current tariff rates for heat generated until the implementation of the new tariffs. It is intended that legislation implementing the new tariffs will take effect from Spring 2014. After the implementation, any heat generated would receive the higher tariff.
The Consultation provides that any decision on tariff levels will be taken in light of affordability constraints in relation to the RHI as a whole. Any increase in the tariffs as a result of the Consultation will also be subject to State Aid approval.
The Department of Energy and Climate change are not prosing to increase the level of tariffs for small and medium scale biomass as there is already high uptake of these technologies.
The Government are also planning on confirming how the RHI for householders will work and publish the relevant tariff levels this Summer. It is expected that the domestic scheme will commence in Spring 2014.