Tariff uplift at low end of expectations, but welcome boost alongside improved deeming methodology

The Government confirmed several changes to the Renewable Heat Incentive yesterday

Stuart Elmes, Chair of the STA Solar Thermal Working Group, said:

"The STA welcomes the uplift to the solar thermal non-domestic tariff, albeit at the lower end of the proposed range. It's disappointing the so-called 'value for money cap' was not adjusted to boost the domestic tariff above the original 19.2p.

"The tariff is only one part of the puzzle though. For instance, the much improved deeming methodology announced in October will help boost returns for customers. We are confident that solar thermal now has most of the policy ingredients for much needed recovery in 2014."

The STA estimates that the costs of installing solar hot water systems could fall by as much as 30% as the market expands to catch up with solar PV