GI Energy has welcomed the government’s promise to review Renewable Heat Incentive tariffs for ground source heat pump technology.
The company, which to date has installed more than 200MW of GSHP heating and cooling systems, believes a rise in tariff will kick-start the uptake of this important form of renewable energy.
Chris Davidson, development director of GI Energy, said, “I am delighted that the Department of Energy and Climate Change has announced that it will review the RHI tariff in the light of concerns about its current level.
“I am also particularly pleased that the DECC has promised that all installations accredited from 21st January 2013 onwards will benefit from any increase in the tariff when it comes into force.
“This is good news – 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.”
Following DECC’s announcement, there is widespread anticipation that the review will lead to a substantial increase in the RHI tariff for GSHP, which according to the Ground Source Heat Pump Association, could be up to 9.4p per kWh based on the evidence presented.
A further announcement, once the review is complete, is expected in spring.
Earlier this year Davidson was one of a group of industry representatives who lobbied energy and climate change minister Greg Barker, to revisit the tariff, arguing that it was skewed unfairly in favour of other renewable energies.
In its latest announcement DECC has accepted that “emerging evidence” raises enough questions about the underlying assumptions on which the tariff was constructed to warrant a review.