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Article Date: 24th April 2013

Daikin UK urges Government to double RHPP Funding

Heat Pumps - Renewable Heating - Climate Control - Split Systems

Daikin Heat Pump

Daikin UK has urged the Government to double the Renewable Heat Premium Payment (RHPP) funding currently available to claimants, following the postponement of the Renewable Heat Incentive (RHI) scheme until spring 2014.

Daikin UK, a major manufacturer of air-to-water heat pump technologies said it would like to see available funding increased from £850 to £1700 during the extension of the RHPP announced on March 26th. This would demonstrate the Government’s commitment to encourage significant uptake of air source heat pumps as a renewable technology.

The number of households participating in the scheme to date has been very low. Under the first phase of RHPP in 2011, a total of 1,837 households claimed funding towards their air source heat pump installations, and in the second phase of RHPP in 2012, only 1,260 households claimed the grant.

During the announcement of the Government’s future heat strategy Edward Davey, the Energy Secretary, said: “Many homes and businesses across the UK have already switched away from fossil fuels and are using kit like biomass boilers, heat pumps and solar thermal panels to provide heat, thanks to Government support, and I want to ensure even more householders and organisations get on board.”

The Government has set a target of 15% of the UK’s energy supply to come from renewable sources by 2020. To make this a realistic proposition, Daikin UK believes, much more needs to be done now.

The RHPP funding extension will be available for households until the end of March 2014 for air-to-water heat pumps, ground or water source heat pumps and biomass boilers where households currently rely on oil, liquid gas, solid fuel or electricity. Funding for solar thermal technology is also available.

Daikin UK is also seeking clarification that all RHPP installations will qualify for the domestic Renewable Heat Incentive (RHI) Scheme which has now been delayed until spring 2014. It would like the Government to recommit that the RHI tariff will be available to all qualifying installations since 15th July 2009, even if they have received the RHPP. This, it said, would send a clear message to those who have already committed to renewable technologies from an early stage that they will not miss out on the future financial reward.

Peter Verkempynck, Managing Director of Daikin UK, welcomed the extension of funding under the RHPP scheme but said: “A higher financial incentive is immediately needed to encourage the take up of renewable heating technologies to meet energy targets.”

Domestic air-to-water heat pumps are defined as renewable energy systems under the European RES Directive and provide a greener source of energy with lower carbon emissions and greater running cost savings compared with other types of fossil fuel based heating measures.

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