SBM (Posted 09.04.14)

Industry Responds to Domestic RHI Launch.

The views of those involved in the supply of 'Renewable' technology in relation to the announcement from DECC today have been arriving in our office and we have collated them below:

David Lacey - Commercial Director Heating and Renewables at Daikin UK, has welcomed the launch of the domestic Renewable Heat Incentive (RHI) scheme, which allows homeowners to claim money back on energy generated by renewable heating, such as air-to-water heat pumps and solar thermal systems saying:

"The introduction of the eagerly-awaited domestic RHI should give the industry a massive boost,” Lacey said. “It will provide financial help to households wishing to make the switch to renewable heating and is a really important step in providing a secure UK energy infrastructure and in reducing carbon emissions.”

The Daikin Altherma air-to-water heat pump range including the new Hybrid heat pump, and Daikin solar thermal systems are all eligible for the domestic RHI. Homes with an air-to-water heat pump system can claim 7.3p for every kWh they produce, for up to seven years after installation, and 19.2p per kWh for solar thermal systems for hot water.

“As well as new systems, the scheme will be open to eligible installations commissioned since 15th July 2009,” Lacey said. “It’s worth remembering, however, that domestic RHI funding is only available for Microgeneration Certification Scheme (MCS) accredited products which have been installed by an MCS accredited installer.”

Andy Deacon - Director of Development at the Energy Saving Trust, says:
“The domestic Renewable Heat Incentive (RHI) makes renewable heat technologies more cost-effective in off-gas properties – around six per cent of all UK homes – which are often heated by more expensive fuels. With rising energy bills and worries about energy security, there needs to be a major transformation in the way we heat our homes, with the domestic RHI helping to make this a reality through enabling households to receive an income for renewable energy generation, while also achieving financial and carbon savings.”

Paul Joyner - Managing Director of Sustainable Building Solutions, part of Travis Perkins Group, said:
"The launch of the RHI today is fabulous news and we are celebrating today. This will form a major boost to the renewable heating industry and the drive to reduce the country's carbon emissions.

“With £2.7 billion of funding available to inspire an anticipated 750,000 installations by 2020, we are expecting the RHI to do for the renewable heating sector what Feed In Tariffs did for solar photovoltaics.

“What is most exciting about the RHI is the way it ties renewable heat generation together with the need to get the fabric of the building right first. To qualify for RHI payments, each building has to undergo a Green Deal Assessment to prove the fabric of the building is sufficient to keep the heat in.

"This is a great opportunity for installers to maximise their income by adapting their business to cover all aspects of each RHI project – the assessment, the retrofitting of the building fabric, and the installation of the heat pump, biomass, or solar thermal technology.
"The Travis Perkins Group is the only player in the market with leading merchants in each product sector, helping installers access the best products and prices to offer a complete whole-house solution.”

Jenny Fenton - Independent Green Deal Asessor
"The RHI scheme has been talked to death for the last year & I think we were all sceptical of whether or not it would actually happen… Its good news in the long run, as I think we will see the gradual up-take of various, more sustainable heating options (both hot water & space heating), with the volume eventually encouraging more investment in the sector’s R&D and – in the long run – prices reducing on this fairly new technology to a point where they are a reasonable comparable to traditional fossil fuel burning appliances.

I don’t believe it goes far enough, fast enough to meet the government’s Kyoto Agreement commitments but something is better than nothing! Let’s hope the Big 6 don’t find a way to hi-jack it in the same way that they have the Green Deal."

N.BWe will create a further article for any additional comments that we receive, our own observation is that the UK Government now needs to create a feeling of certainty to allow confidence to grow and ensure that the market place is an equal playing field for suppliers and installers and that the consumer gets a 'fair' deal at all times.

Minister for Energy Greg Barker with a Grants biomass boiler and Claire Perry MP. Grants is in Claire Perry’s constituency David Lacey, Commercial Director Heating and Renewables at Daikin UK