Renewable heat installer, Yorkshire Heat Pumps, is urging businesses to take advantage of the non-domestic renewable heat incentive (non-dom RHI) ahead of the upcoming degression.
Following increased deployment the non-dom RHI will degress by 10% for those projects registered on or after 1 January 2015. The degression follows quickly on the heels of the last degression which took place on 1 October.
Michael Wright, from Yorkshire Heat Pumps based near Harrogate, commented: “Degressions are expected to continue throughout 2015, so organisations considering a switch to a renewable energy heating system such as an air source or ground source heat pump, or biomass boiler, would be wise to consider acting sooner rather than later to maximise financial returns.”
However, Wright added: “One word of warning, though: in the rush to get a system installed and the application submitted, businesses should not take shortcuts. They should satisfy themselves that the system they plan to install is correctly specified for their needs and is robust enough to last the 20 years of their RHI payments. We have heard of installations where boiler selection was based on availability rather than suitability for the job!”
Wright added: “On the plus side, despite the fact non-domestic RHI tariffs are steadily coming down, it’s important to remember that switching to a renewable technology will continue to make financial sense. In particular businesses that are off the gas grid will see a substantial difference in running costs compared with LPG, oil and coal.”