The DECC has published the Government response document ‘Non-Domestic Renewable Heat Incentive: Improving support, increasing uptake’, which sets out a range of improvements and increased support under the non-domestic Renewable Heat Incentive (RHI).
Greg Barker, minister for energy and climate change, said: 'Subject to State Aid approval, we intend to increase the support available for renewable Combined Heat and Power (CHP) plants, large biomass boilers (over 1MW), deep geothermal, ground source heat pumps, solar thermal and biogas combustion >200kWth.

'We are also introducing new support for air-water heat pumps and commercial and industrial energy from waste, along with improvements to our budget management policy and further policy development on providing increased tariff certainty for large-scale schemes.'

Responding to the announcement, John Felgate, head of technical at heat pump manufacturer Stiebel Eltron UK, said: 'This announcement is good news for manufacturers and installers alike - there has been much lobbying to include air-water source heat pumps as part of the commercial RHI and the industry will be happy that DECC has listened to our advice.

'The tariff itself of 2.5p is pitched very well to give businesses the right kind of return that they need.

'Up to now only ground source heat pumps have been incentivised and we have certainly seen an increase in take-up - we hope to see a similar rise in demand for air-water heat pumps now that consumer confidence will grow and a return on investment is guaranteed.

'At Stiebel Eltron UK we have continually called for stronger support from the government and this is another step forward to assist the renewable energy sector. We are also currently lobbying to get DHW heat pumps for commercial projects listed on the Enhanced Capital Allowance (ECA) Scheme, as this will be a further incentive for businesses to go green.'