RHI announcement will spur heat pump sales

Say Mitsubishi Electric

Mitsubishi Electric has welcomed the announcement from DECC (Department of Energy and Climate Change) on the domestic RHI (Renewable Heat Incentive) scheme which allows people installing low carbon heating systems to qualify for a financial payment for every kWh of renewable heat they produce.

The company manufacturers the award-winning Ecodan® range of air source heat pumps, which deliver market-leading levels of reliability and efficiency, backed up by a nationwide network of accredited installers.

“This is a clear statement of long-term intent from the Government which gives everyone confidence that the scheme will help the market grow in a sustainable and meaningful way,” explains John Kellett, General Manager of the company’s Ecodan range.

“In particular, we are encouraged by the links with the Green Deal which will ensure that renewable technologies are only installed in properties that have been thermally improved to ensure that any renewable heat generated is not wasted.”

Mitsubishi Electric has led the market in insisting on appropriate standards of installation for heat pumps to ensure that the highest standards and performance levels are achieved.

“Ecodan units are already proven in their ability to reduce running costs and CO2 emissions throughout the UK and we are able to provide clear evidence of the benefits to households from more than 80 monitored sites,” adds Kellett.

Renewable Heat Incentive payments will be conditional on a Green Deal assessment of the thermal efficiency improvements to the property, so that renewable heat is not wasted. Kellett is confident that this element will help promote the benefits of high performance heat pump systems such as Ecodan, as well as demonstrate the advantages over competing technologies.

The RHI scheme aims to encourage the public to install environmentally friendly heating systems such as solar thermal panels, biomass boilers and ground and air source heat pumps. Kellett believes that the Government has set the incentives at reasonable levels reflecting the differing upfront costs and levels of maintenance.

“We are confident that Ecodan offers the highest levels of efficiency in the quickest and most straightforward way for the majority of homes and the incentive levels reflect the ease of installation and operation,” adds Kellett. “We fully expect greater interest now, particularly in off-gas areas where Ecodan compares so favourably with oil, LPG and direct-electric heating.”

The RHI scheme has been expanded to allow homeowners, landlords, and third party owners of heating systems to benefit. In addition to new systems installed after April 2014, the incentive also applies to anyone who has installed renewable heat technology since 15 July, 2009, and who meets the eligibility criteria.

Applicants will need to complete a Green Deal assessment to determine their thermal and insulation performance, to a minimum of cavity wall and loft insulation in order to qualify for the payments.The RHI for householders will be administered by Ofgem with more details on how to apply to be published soon.

“We should now see a transformation in the use of renewable heat in this country and welcome the certainty that this will brings to the domestic sector,” ends Kellett.

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