RHI UPDATE

Air Source Heat Pump Tariff Increase

Ofgem have stated that the Renewable Heat Incentive ("RHI") payments for air source heat pumps are due to increase by approximately 33% this Spring/Summer. For a typical 3-bedroom property with a heat load of 15,000 kWh, the amount of RHI payable is now over £1,000 per year, an increase of around £240 from the previous tariff rates.

The new tariffs are shown in the table below:

Technology

Ground Source Heat Pumps

Air Source Heat Pumps

 

Tariff Change

19.86 pence/kWh (previously 19.64 pence/kWh)

10.18 pence/kWh (previously 7.63 pence / kWh) 

The exact date that this increase will be implemented is yet to be confirmed as it is subject to Parliamentary approval.

Proposed Cap on Payments

Ofgem have also released a statement introducing the proposed cap on RHI payments. This cap will be set at 20,000 kWh of qualifying renewable heat for air source heat pumps and 30,000 kWh for ground source heat pumps. These caps are also subject to parliamentary approval with the same timescales as for the tariff increases.

Further Information

Full details of the announcement can be found on the Ofgem website.

Please don’t hesitate to contact us to find out what these changes will mean for you or your client.

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