Benham Publishing Businesss Magazines February 2014 | Page 49

EarthtestEnergy

Renewable heat payments confirmed
for ground source heatpumps
The tariff for the installation
of Domestic Ground Source
Heat Pumps was announced
on July 15th.
The domestic tariff rate has been announced as
18.8pence per kilowatt hour. The domestic
scheme will pay out for 7 years for every kilowatt
hour of heat generated by a domestic heatpump.
In addition an annual payment of £230 will be
available if the house is metered.
The government will be introducing the domestic
tariff payments next summer 2014, however they
will include any ground source heat installations
from this summer 2013 in the new tariff.
The Non Domestic Renewable Heat Incentive (RHI)
has been running since last November and
Earthtest Energy acquired the first ever RHI for one
of our commercial clients. The RHI for commercial
and industrial properties has doubled for
installations after January 2013 making it an
attractive financial proposition to install ground
source heat in these premises.
The heat produced will not generally be metered,
but calculated by the installer on a deemed basis,
dependent upon the house type, construction and
location. There is an opportunity for home owners
with very efficient systems to receive higher tariffs if
they agree to the efficiency of their system being
metered.
A condition of eligibility will be that the house is
insulated to economic levels, and there will be
loans available through the Green Deal to finance
the required insulation. New homes and major
renovations will be eligible for Renewable Heat
Incentive Tariff payments proved they satisfy the
insulation requirements of the current building
regulations.
The Domestic Renewable Heat Incentive Policy will
be published in Autumn 2013 and the Domestic
Renewable Heat Incentive Scheme will be
launched in Summer 2014.
For a typical existing 4 bedroom house we would
expect to install a 12kilowatt heatpump and for
this to earn £5,500 per year or £38,500 plus
inflation over the 7 year payment period.
For an older 4 bedroom house particularly in a
rural setting, we would expect to install a 24
kilowatt heatpump, and for this to earn £11,000
per year or £77,000 plus inflation over the 7 year
payment period.

Larger houses with indoor swimming pools would
need a 45kilowatt system and could expect to
earn £24,000 per year or £170,000 plus inflation
over the 7 year payment perio