Need some advice? - 01293 821 345 - consult@iso.co.uk

There are many possible changes heading our way in the coming months in relation to the Domestic RHI scheme and suppliers prices.

These changes could affect the price you pay for your installation and the amount you can claim through the government subsidy. If you are considering a ground source heat pump installation, now is the time to act!

There was a consultation issued on 3rd March 2016 from DECC, now DBEIS which outlined proposed changes to the Renewable Heat Incentive (RHI) Scheme in order to make it a reformed and refocused scheme. This document outlines that DECC plan to introduce a cap on the number of kWh’s which can be claimed for through the RHI scheme, this proposed cap would be set at 25,000 kWh and would start as of 1st April 2017. Therefore the maximum you could claim through the Domestic RHI scheme would be £3,508 per year. This assumes an SPF of 3.65, as a company we monitor 42 of our installations and from this we have an average SPF of 3.65. This cap could equate to a quarter of some properties current RHI return. As a company we have responded to the consultation disagreeing with this plan, however there is yet to be any feedback on the consultation and a decision has not been made. As the window for change is quickly approaching we are advising all of our clients to act now so they do not miss out on the RHI scheme. Any installations registered before the changes will receive the higher tariff rates for the life time of the scheme, once you are in, you are in.

As well as the potential changes to the Domestic RHI scheme, there are also some changes occurring to the price of heat pump equipment. Since the announcement of Brexit in June this year there has been a fall in the value of the pound, meaning the pound is weaker than it once was. Many of our chosen suppliers and manufacturers are based in Europe, with our heat pumps being imported from Sweden, Spain and Germany. This weakening of the pound has in turn lead to imported goods becoming more expensive. This higher cost has yet to be passed on to installers and customers, however many of our suppliers and manufacturers have told us that there will be significant price rises coming in January 2017 to compensate for the fall in the value of the pound. In essence this will lead to higher equipment costs and therefore higher installation costs for renewable technologies. Sadly we are not the only industry to be affected, these prices rises are thought to be seen in the supermarkets in the coming months as well. However, if an order is placed with isoenergy in 2016 we will honour the quotation and it will not be affected by the 2017 price rises.

With all of this in mind, there is no better time to install a ground source heat pump than now. With the RHI scheme still allowing an uncapped claim for domestic properties and with the price rises having not yet been implemented this is the perfect time to start your renewable installation so you do not get caught out.

What are you waiting for? Give us a call today on 01293 821345 to discuss your renewable installation.

 

 

 

 

 

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