Member Article

Government renewables incentive opens gap in the market for Yorkshire firm

Officially launched in spring 2013, Yorkshire Heat Pumps has made full use of government schemes to encourage renewable heating alternatives.

The Renewable Heat Incentive, previously aimed at the commercial sector, is being extended to the domestic market which is encouraging more homeowners to look to renewables as a substitute.

The Renewable Heat Premium Payment (RHPP) voucher scheme preceded the domestic RHI which will come into full effect in mid 2014 and provides subsidies for renewable heating technologies such as solar panels, heat pumps and biomass boilers.

These government schemes are part of a wider programme which aims to gain 15% of the UK’s energy demand from renewable sources by 2020.

Every property will be different, and this will also impact on the level of RHI payments the property receives. Domestic RHI is paid over seven years and the scheme is designed to deliver payback within five to seven years for domestic properties.

Published case studies such as those on the NIBE website include large commercial installations that can pay back in under three years and domestic installations that can slash energy bills for heating by over 70%.

A recent YHP air to water heat pump installation in a large Tile showroom, the business will have a heating-only cost reduction of 17% per annum compared with gas.

Michael Wright, founder of Yorkshire Heating Pumps said: “I launched the company earlier in the year to run alongside my interiors business.

“The purpose behind the company was mostly to meet the increasing interest in heat pumps and biomass, as the government released plans for the domestic Renewable Heat Incentive.

“I’ve also seen an increase in demand from my interiors business, where clients wish to incorporate renewable technology, but in a seamless fashion. Refurbishment, or a total property re-design is always a good time to add in renewables as it allows for easy incorporation.

“There’s a wealth of properties around Yorkshire and beyond, especially those off the gas grid or with oil-fired systems that could benefit tremendously from the installation of a heat pump or biomass boiler.”

A spokesperson for the company also said: “A number of Yorkshire properties – particularly in villages that are off the gas grid - run on oil or LPG which is extremely expensive.

“There are also a number of homeowners with barns or farms looking for a whole house renovation – which is the ideal time to incorporate renewables.

“We are certain Yorkshire people will be receptive to the idea. With the inexorable rise of fuel prices an alternative system which reduces energy consumption and earns payback from government is pretty much a no-brainer.

“As well as domestic properties there are numerous small business owners out there who could really benefit from a more efficient system and enjoy RHI payments for ground source or biomass in their business premises for 20 years to come.”

This was posted in Bdaily's Members' News section by Clare Burnett .