The Department of Energy and Climate Change (DECC) last month announced a review of the Renewable Heat Incentive (RHI) Tariffs in response to concerns raised by the Ground Source Heat Pump Association (GSHPA).
The association highlighted a massive distortion within the RHI payment structure and the low tariffs allocated to GSHP installations. With 98% of the RHI currently allocated to biomass systems, it is also clear that the tariffs significantly favour this technology over others. Not surprising then that take up of GSHP technology during the RHI’s first year has been far lower than expected.
In response to this, the DECC issued a Ground Source Heat Pump Call for Evidence in the autumn of 2012. The evidence supports a revised non-domestic tariff of 9.4p per kWh and the Energy Minister, Greg Barker, has instructed his RHI team in DECC to expedite the review of tariff rates for GSHP systems. A further announcement, once the review is complete, is expected in spring.
It’s also great news for GSHP enthusiasts that Greg Barker has confirmed that all future Phase 1 RHI applications made from 21 January will be offered the higher tariff rates alluded to in the DECC’s statement.
That’s music to the ears of GI Energy, the company that pioneered the use of Ground Source Heat Pump systems in the UK.
Chris Davidson, Development Director of GI Energy says: “If the Minister gets the tariff right then 2013 could really be the year when Ground Source Heat Pump systems assume the leading role they can certainly play in cutting the UK’s carbon emissions.
“They are sustainable, renewable and offer long-term benefits when compared to conventional heating and cooling systems. It would be a shame for the UK to fall behind in carbon reduction for want of a fair tariff.”
The Minister will no doubt be anxious to avoid the mess surrounding the Feed-in Tariffs that has resulted in 17 solar companies seeking multi-million pound damages. The group is claiming that the fast-track cuts to the Feed-in Tariff led to a dramatic slump in orders and forced thousands of redundancies. As a result, the companies are seeking around £140m in damages from the department.
In this edition of Construction Magazine we Spotlight how mobile comms could help streamline the construction industry and boost productivity.
In Build a Greener Future, Derek Hunt, MD of Rain Harvesting Systems Ltd and founder member of the UK Rainwater Harvesting Association, discusses how the latest EC water policy aimed at safeguarding Europe’s water supplies might impact on the UK construction industry.
Meet some of the newest industry appointments in Head Hunters. Get your diary and your passport ready for our digest of construction events happening around the world this month and check out our round-up of some of the most exciting European construction equipment launches.
All this, along with profiles on some of the industry’s best performing firms and the usual round up of UK & Ireland and World news.
Heather Campbell
Editor
