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HPA welcomes extension to the Non-Domestic RHI

The HPA (Heat Pump Association) has welcomed the announcement of the extension to the Non-Domestic Renewable Heat Incentive (RHI).

In a statement Tony Bowen, President of the HPA, said: “This second phase of the Non-Domestic scheme significantly increases financial support for eligible GSHP systems and most importantly now includes Air Source Heat Pumps (ASHP’s) which at 18 months since initial launch, is long overdue.

“This is a clear demonstration of the commitment and resolve of Trade Associations including the HPA to work with DECC for the continued development and extension of the RHI schemes, in this particular case  Non-Domestic” said . “We shall continue our work post launch with both DECC and OFGEM to further extend and improve both the Domestic & Non-Domestic schemes”.

The HPA added: “It is widely thought that this long awaited extension (“Phase2”) to the Non-Domestic scheme  should go some way to help to re-dress the very clear imbalance in the scheme whereby Biomass dominates the small & medium sectors and, as a result, has had tariff reductions for new entrants applied several times since initial scheme launch in November 2012.

The increase in the GSHP tariff from 4.3 p/kWh to 8.4 p/kWh for the first 1314 full load equivalent hours (or 2.6p/kWh thereafter- see www.heatpumps.org.uk for further explanation and an example calculation) and the first inclusion of ASHP in the scheme (@2.5p/kWh) will undoubtedly have a significant effect on the uptake of these technologies. The only question is, will it be sufficient to grow the markets sustainably and/or meet EU renewable energy targets?”

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