DECC announced the details of the Renewable Heat Incentive around 10:15 this morning. The main features are:
RHI will be introduced in two phases.
RHI initially targeted at the non-domestic sector.
Support for a range of technologies and fuel uses including:
– solid and gaseous biomass,
– solar thermal,
– ground and water source heat-pumps,
– on-site biogas,
– deep geothermal,
– energy from waste
– injection of biomethane into the grid;
Note – no ASHP initially – but this may be added from 2012
Only new equipment will be eligible, conversion of existing plant will not. Considered for the future.
• Support for all non-domestic sectors including:
industrial and the commercial sector;
the public sector;
• RHI payments to be claimed by, and paid to, the owner of the heat installation or the producer of biomethane;
• Payments will be made quarterly over a 20 year period;
• For plants up to and including 45kWth both installers and equipment to be certified under MCS (or equivalent)
• Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems, with additional compensation for certain technologies for an element of the non-financial cost;
• Heat output to be metered and the support calculated from the amount of eligible heat, multiplied by the tariff level;
• Biomass installations of 1 MWth capacity and above will be required to report quarterly on the sustainability of their biomass feedstock for combustion and where they are used to produce biogas;
• Eligible non-domestic installations completed on or after 15th July 2009, but before the start of the RHI, will be eligible for support as if they had been installed on the date of its introduction;
• The Gas and Electricity Market Authority (Ofgem) will administer the RHI including:
dealing with applications; accrediting installations; making incentive payments to recipients;
and monitoring compliance with the rules and conditions of the scheme;
• The RHI will be funded from general Government spending, not through the previously proposed RHI levy.
All systems up to 45kWth must be MCS to be eligible. All eligible systems installed since 15th July 2009 can claim RHI.
No allowance for grants and RHI payments. Anyone who has received a grant for systems since 15th July 2009 must repay it in order to qualify for RHI. Anyone who accepts a grant after the RHI regulations come into force will be excluded from RHI.
Will also introduce Renewable Heat Premium Payments (RHPP) for the domestic sector supported by a ring-fenced £15 million fund (to be spread across 25,000 households = average £600 per household)
“These direct payments will subsidise the cost of installing qualifying renewable heating systems. In return for the payments, participants will be asked to provide some feedback on how the equipment works in practice and suppliers will be asked to provide a follow up service on any issues that are raised. This will boost confidence in the technology and the information we receive will help enable Government, manufacturers, installers and consumers to better understand how to maximise performance of the various technologies. The Renewable Heat Premium Payments will support a spread of technologies across all regions of Great Britain and will cover households using gas and other fossil fuels. We may consider focusing support for primary heating systems, such as heat pumps and biomass boilers, on households off the gas grid, where fossil fuels like heating oil are both more expensive and have a higher carbon content. We aim to launch the Renewable Heat Premium Payments in July 2011 and will announce further details in May 2011.”
Full support for the domestic sector – to be introduced in 2012 to link in with the launch of Green Deal.
Domestic users from Phase 1 (under the RHPP) will get access to the long term tariffs once these are launched.
“we will also consider introducing support for a number of other technologies and fuels which are not supported from the outset.”
The RHI will be open to new installs up to 2020. Scheduled review in 2014 and every 4 years.
No tariffs for domestic owners have been announced – these will be published later.
DECC press release
Full RHI details