The Department of Energy and Climate Change (DECC) has announced that the tariff for domestic solar thermal installations under the Renewable Heat Incentive (RHI) scheme will be set at 19.2 pence per kWh.

DECC minister Greg Barker confirmed the price, which was first announced in July this year, when 19.2p/kWh was stated as the minimum tariff that would be applied. Barker said RHI schemes “are designed to stimulate considerable growth in the deployment of renewable heating technologies in the coming years”.

Commenting on the news, 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.”

Along with confirming the domestic solar thermal tariff, DECC will publish further details today on other aspects of the scheme including budget management policy and treatment of other forms of subsidy under the RHI.