Member Article

Green Scheme Gathers Pace

~~The green revolution is gathering pace with biomass and air source heat pumps proving the most popular renewable heating technologies at a national level, but that picture varies across the regions.

Leading Yorkshire renewables installer Yorkshire Heat Pumps, run by husband and wife, Michael and Kate Wright, is reporting an order book now dominated by ground source heat pumps, which is the least popular choice nationally. However, in the run up to Christmas biomass projects lead the way.

The domestic Renewable Heat Incentive (dRHI) scheme, one year old in April, rewards switching to ground source, air source, biomass or solar thermal heating from fossil fuel systems. It pays homeowners a set tariff per kilowatt hour of energy required to heat their home, with payments made quarterly over seven years. Tariffs are reduced for new scheme applicants when uptake of a technology reaches a predetermined level. So far, biomass is the only one to trigger this “degression”.

Ground source heat pumps currently attract a tariff of 19.1p/kWh with air source coming in at 7.42p/kWh, biomass at 8.93p/kWh and solar thermal 19.51p/kWh.

Michael said: “The interest in renewables overall is high and ground source heat pumps are filling our order book at the moment. Heat pumps are low temperature systems which work best in well insulated properties with large heat emitters - under floor heating is ideal. They tend to suit self-builders or those undertaking major extension and conversion projects.”

Said Michael: “We have just had a very busy period with biomass. It’s a high temperature heating system that can work with existing radiators so is a great retro-fit choice for many homeowners, especially those in less well insulated properties that really need a high temperature system. There are a lot of these types of homes in the Dales.”

Air source heat pumps account for the highest proportion of RHI accreditations nationwide, but are the least popular among Yorkshire Heat Pumps’ customers. They are relatively cheap to install and cause a minimum of disruption, so they are an easy choice for someone wanting to make a quick, low cost switch to renewables. Like ground source, they are a low temperature system which will work best in a well-insulated property with large heat emitters.

Kate added: “Domestic RHI payments were designed to neutralise the cost of switching to renewables, and in many instances we expect customers to see a healthy return through their RHI payments. However, the level of return does vary by technology and depends on their property’s heat demand.

“Even though the biomass tariff has dropped and payback for some is now longer than seven years, it will pay for itself in time as biomass still has significantly lower operating costs than a fossil fuel system.”

With almost 32,000 dRHI accreditations in the scheme’s first year, including both new and ‘legacy’ installations (systems installed and commissioned after 15 July 2009 but before the dRHI scheme launched), Michael and Kate are looking forward to what the next 12 months of RHI will bring.

“In our experience, word of mouth is playing a major role in raising awareness of renewables, and the RHI scheme in particular. The arrival in one’s bank account of the quarterly RHI payment is certainly something worth talking about, and we know our customers are spreading the word, because we see these people coming into our showroom to find out what all the fuss (and financial gain) is about,” said Kate.

“With only one technology having hit the degression trigger so far there is still ‘capacity’ for air source and plenty of scope for ground source heat pumps and solar thermal. It’s been a great first year so we’re looking forward very optimistically to seeing how much will have been achieved by the scheme’s second birthday.”

This was posted in Bdaily's Members' News section by Yorkshire Heat Pumps .