Renewable Heat Incentive Scheme

Department for Energy and Climate Change written question – answered on 2nd July 2015.

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Photo of Mary Glindon Mary Glindon Labour, North Tyneside

To ask the Secretary of State for Energy and Climate Change, what plans she has to address the effects of the Renewable Heat Incentive on the ground source industry; and what consultation she plans to undertake with that industry on that incentive.

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change

Holding answer received on 01 July 2015

Ground Source Heat Pumps (GSHPs) are supported under both the non-domestic and domestic Renewable Heat Incentive (RHI). We have increased the non-domestic tariff for GSHPs to 8.7 pence per kilowatt hour (p/kWh) for tier 1 (i.e. the first 1,314 hours of renewable heat produced per year) and 2.6p/kWh for tier 2 (subsequent heat produced). The level of support for GSHPs under the domestic scheme is 19.1p/kWh.

We are aware of the industry’s concerns that the RHI is not supporting as many GSHPs as might be expected; and we are considering what action could be taken. My officials are already discussing this issue with industry, and will continue to do so as options are developed. However, any decisions which involve changes to RHI support will be dependent on the outcome of the Spending Review later this year.

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