Ground source heat pump market leader Kensa Heat Pumps has welcomed the long awaited tariff increases for ground source heat pumps (GSHPs) under the Non Domestic Renewable Heat Incentive (RHI), following an announcement by the Department of Energy and Climate Change on Wednesday 28th May.
Under the non-domestic stream of the RHI, residential district heating schemes and installations in the non-domestic sector receive payments over 20 years for the renewable heat they generate.
Following extensive lobbying from Kensa and other members of the ground source industry, the previously ineffective tariff of 4.8p/kWh has been significantly increased to a Tier 1 rate of 8.7p/kWh (paid for the first 1314 full load equivalent run hours) and 2.6p/kWh thereafter.
“The uplift to the non-domestic RHI ground source heat pump tariffs will undoubtedly kick start the market for a technology which up until now has seen very low uptake under the RHI” said Chris Davis, Commercial Director of Kensa Heat Pumps. “Ground source heat pumps are a well-established technology, with proven energy cost and carbon saving credentials, so the enhanced tariffs will level the playing field in the market compared with other renewable heat technologies and ensure ground source heat pumps can be considered a viable and financially attractive proposition for businesses, public sector organisations, care homes, schools and many other non-domestic applications.”
The non-domestic RHI also applies to district heating systems, an approach Kensa has innovatively adopted as a solution for the social housing sector. “Combined with a capital subsidy from ECO funding, the uplifted non-domestic RHI tariffs for ground source heat pumps make Kensa’s “micro-district” solution increasingly attractive to the social housing market,” explains Davis. “The recently announced domestic RHI seems unlikely to be especially appealing to the social housing sector, however using Kensa’s unique approach of individual ground source heat pumps in each dwelling connected to a communal ground array, the enhancement of the non-domestic RHI tariffs creates an attractive opportunity for social housing to benefit from a financially compelling return on investment for a heating solution that will reduce both tenant fuel bills and overall operating and maintenance costs”.
Kensa’s UK manufactured ground source heat pump range covers models from 3kW to 75kW, including the award winning 3kW and 6kW Shoebox models and single phase units with outputs up to 24kW.