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HPA responds to DECC’s RHI non-domestic update

The Heat Pump Association (HPA) has welcomed the Government’s response to non-domestic RHI consultation “Providing Certainty & Improving Performance”, which closed in Sept 2012.

In a statement it said: “The HPA is pleased to see that all the hard work and input provided by various organisations has been taken into account by DECC on behalf of HM Government. It is vitally important that this process continues and, even more importantly, that it is clearly seen to be moving positively to full implementation in accordance with the outline programme published in the July 2012 Consultation.

The HPA is concerned that final timescales appear to rest upon Parliamentary time being available, but hopes this response by DECC will at least send the message to sceptics that RHI Non-Domestic Phase II, with the inclusion of Air Sourced Heat pumps and other additional technologies, is to be a reality.

The HPA is very concerned that it appears the view being taken is that deployment for GSHP is likely to remain “low” and thus a trigger point for its digression in tariff has been set at just 5 per cent of total spend.

This appears to be a potential self- fulfilling prophecy situation. GSHP deployment is low for a number of reasons and a more realistic tariff along with Preliminary Accreditation and ideally Enhanced Preliminary Accreditation (EPA) would contribute positively to its wider deployment.

However, for reasons of understandable expediency, EPA will be delayed until the current cost control measures are tried and tested.  Worse still, any GSHP tariff uplift during the current review period, anticipated by many, could increase take-up of GSHP quite modestly yet still trigger degression and hence a reduction in tariff.

What remains key to industry are: tariff levels, trigger point for individual technologies , Enhanced Preliminary Accreditation and which technologies will be added to Non-Domestic RHI Phase II.”

The Heat Pump Association is part of the Federation of Environmental Trade Associations (FETA).

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