Viessmann responds to the announcement of the domestic RHI tariffs
Quote attributable to Darren McMahon, marketing manager, Viessmann Ltd.:
After many months of waiting, DECC’s policy document provides long-awaited clarity for the renewable heating industry.
The tariffs are a mixed bag when it comes to the attractiveness of the different technologies and the outright winner has to be ground source heat pumps. Receiving the substantial tariff level of 18.8 p/kWh, this renewable energy source will be a better financial option than gas after only four years, when the initial investment has been paid back, assuming gas price increases continue at their current rate.
Unfortunately, we can’t see biomass faring as well under the scheme. Unless the end user has access to free fuel/pellets, a tariff of just 12.2p/kWh (that’s 6.6 p/kWh less than ground source heat pumps) is unlikely to make biomass boilers a cost-effective investment, especially as the initial investment level is higher than for ground source heat pumps.
The announcement is certainly good news for solar thermal sales. Eclipsed by the success of solar PV in previous years, the boost to at least 19.2 p/kWh will see payback brought forward to around ten years. Combined with future fuel savings, this makes the technology extremely viable and we’re extremely pleased that DECC will make this increase, as we’re convinced that solar thermal should play a big role in reducing energy demand and carbon production.
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