Towards the end of March 2020, we saw a degression in the large (100 kWth and above) ground/water source heat pump RHI tariff of 10%. The recent expenditure forecast published by Ofgem at the end of May highlighted that this technology continues to exceed its expenditure threshold, and as such will be subject to a further degression of 20%, effective from 01 July 2020.

The forecast also confirms there will be no degression on the RHI tariff for small ground/water source heat pump or any other technology eligible for the scheme.

How to secure your tariff

Tariff guarantees allow you to secure a tariff for a project ahead of installation and commissioning. Eligible technologies include any size of solid biomass Combined Heat and Power (CHP), geothermal and biomethane technology along with biomass (over 1 MWth), biogas (over 600 kWth) and large ground/water source heat pumps (over 100 kWth).

To secure the current tariff for a large ground source heat pump, either a tariff guarantee should be submitted, or your installation will have to be commissioned and a Non-Domestic RHI application submitted by 30 June 2020.

Installations that receive a tariff guarantee must be installed, commissioned and using heat for an eligible purpose by the 31 January 2021. If you are installing or planning to install any of these eligible technologies, a tariff guarantee application may be right for you to avoid any potential degression.

We have processed many of these applications and can help to fully guide you through this process. If you would like to talk about this opportunity give us a call on 024 7669 8899 to discuss your project.