Quotatis | Heat Pump Advice

Tariff rates announced for heat pump systems


Producing your own energy with heat pump systems will have yet another bonus from 2014, after the Government’s announcement on tariff rates for renewable heat technologies. From next spring those with air source and ground source heat pumps will start earning hundreds of pounds each year for the energy produced onsite.

And coupled with the huge savings already made annually on energy bills, the Renewable Heat Incentive (RHI) offers a fantastic opportunity to make an excellent return on investment.

But with worries that heat pump systems could rise in price over the next six months because of this incentive, now is the time to consider an installation and reap the rewards.

The tariff rates for heat pumps in the UK from spring 2014 will be as follows:

  • Air source heat pumps: 7.3p/kWh
  • Ground source heat pumps: 18.8p/kWh

The scheme is a clear aim to incentivise the uptake of renewables such as heat pump systems, which are fast increasing in popularity. The Government are keen for renewables to take a larger brunt of the effort in reducing CO2 emissions, in line with EU targets.

And this latest scheme is on top of the on-going grants available for domestic installations. The Renewable Heat Premium Payment scheme has recently doubled grants available and you can now receive a:

  • £2,300 grant for ground source heat pumps
  • £1,300 grant for air source heat pumps

Will I be eligible for the RHI?

Homeowners and landlords are those set to benefit most from the RHI payments and the scheme will be open to all these in the UK. Payments will be available to those who install heat pumps now, and installations backdating to 15 July 2009 too.

However, you must have one of the following technologies installed to receive payments under this particular scheme: Air to water heat pump systems; biomass only boilers and biomass pellet stoves with back boilers; ground and water source heat pumps; flat plate or evacuated tube solar thermal panels.

When are payments received?
Heat Pump prices
From your registration to the scheme you’ll be eligible to earn for seven years, with payments set to take place every four months. Early estimations predict that with a heat pump you’ll be able to save and earn hundreds of pounds every year, providing a great return on investment over the technology’s lifetime.

Energy and Climate Change’s Greg Barker said: “The Coalition is committed to helping hardworking families with the cost of living.

“Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.

“Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110 per cent committed to boosting and sustaining growth in this sector.”


Facts & Figures You’ll Love To Share

  • A heat pump is capable of generating enough heat to reduce your annual energy bills by up to £650.
  • The Government’s Renewable Heat Incentive will pay out hundreds of pounds a year for the renewable heat produced.
  • Cash grants of up to £2,000 are available to help fund the purchase of heat pumps.
  • As gas and electricity prices continue to rise, heat pumps will provide greater savings for the years to come.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Tom Crosswell

I have been managing online projects since 1999 and I'm a experienced marketeer, who is well versed in international brand management, online business strategy and developing long term relationships. Through my academic and professional background I am a specialist in generating online loyalty towards brands. My experience has taught me that ultimately business is about relationships and people. For more information see my Google+ page.