Renewable Heat Incentive
The Domestic RHI
Three good reasons to choose
renewable heat…
1. Now every building will be able to get an incentive if it
goes renewable – the RHI is a reality
2. Government has allowed for significant growth
year on year in renewable heat demand in domestic
and non domestic properties
3. Customers like renewable heat – easy to use and
adds value
2 Renewable Heat Incentive
Renewable Heat Incentive
The Domestic RHI
Customer satisfaction
• 85% satisfied with new installation
• 80% found installation process easy
• 60% believe RHT easier to use
• Majority think installation has added value to their
property
Initial data from RHPP evaluation
3 Renewable Heat Incentive
Renewable Heat Incentive
The Domestic RHI
Heat is an issue for the UK
4 Renewable Heat Incentive
• 47% of UK energy use is in respect of heat and the UK spends around £32bn
on heat across our economy
• Around 1/3 of UK’s carbon emissions come from energy used to produce heat
• Under EU Renewable Energy Directive 2009 we have a binding commitment
to increase renewable energy use to 15% by 2020
Prepare for mass rollout in 2020s
Build sustainable supply chains Improve performance Reduce costs Reduce barriers to uptake
Legally binding targets have resulted in introduction of RHI
Full payment guaranteed once in scheme Incentivise roll out of renewable heat systems
Renewable Heat Incentive
The Domestic RHI
Which scheme is right for me?
5 Renewable Heat Incentive
Domestic Non-domestic
Eligibility
Property must have domestic EPC - single
domestic dwelling.
Home owners, social and private
landlords and self builders (not new build)
Third party owners not yet eligible
Commercial, industrial, public
sector and not for profit
Multiple homes (including District
Heating) – no exclusion for new
build properties
Payment
period
Payments made over 7 years (to
compensate for 20 years of benefits) Payments made over 20 years
Measuring
usage
Deemed renewable heat output (metered
if back up system or second home)
Eligible heat use is metered on
actual generation or use
Renewable Heat Incentive
The Domestic RHI
Social Landlords in the RHI
6 Renewable Heat Incentive
Domestic RHI
RSLs can apply for and receive RHI payments for property / properties they own
Expectation that permission granted from tenants for installation / maintenance etc
For ALMOs, application must come from the owner of the heating system
Same tariff levels apply as for individual household applications
Non-domestic RHI
Single installations supporting multiple domestic properties are eligible
Could include district and community renewable heating
This could be, for example, a central biomass boiler for an apartment building
Or a network of pipes delivering heat from central location to multiple properties
Series of RHPP Social Landlords competitions provided £10m in funding for 4,200
installations in tenants’ homes (2011 – 2014)
Renewable Heat Incentive
The Domestic RHI
Can be cost-effective and viable alternative to individual installations
Reduces cost of energy for consumers
DECC offers support to local authorities in developing heat networks through Heat Networks Delivery Unit
RHI offers support for district heating through standard technology tariffs
Potentially a priority measure for ECO funding (under consultation)
Supplies heat from central source directly to homes / businesses through
network of pipes carrying hot water
District Heating / Heat Networks
7 Renewable Heat Incentive
Renewable Heat Incentive
The Domestic RHI
Tariffs & Eligibility for the Domestic RHI
8 Renewable Heat Incentive
Biomass only boilers
Biomass pellet stoves with integrated boilers
Air source heat pumps
Ground source heat pumps
Solar thermal panels - flat plate / evacuated tube only*
Eligible solar thermal panels
only provide hot water
Only one space heating
system per property
Can apply for solar thermal
for hot water AND a space
heating system
12.2p
12.2p
7.3p
19.2p
18.8p
Paym
ents
per
kW
h
Metering for second homes
& homes retaining
secondary heating options *Solar PV-T eligible for FiTs, but not domestic RHI at present
• Tariffs are dependent on the type of technology installed
Renewable Heat Incentive
The Domestic RHI
Quarterly payments in arrears for 7 years
9 Renewable Heat Incentive
ASHP
• Between 10 and 35%
• If installed and operated properly
Biomass
• Between 15 and 40%
• Dependent on the price of wood fuel used
GSHP
• Between 25 and 40%
• If installed and operated properly
Solar Thermal
• Between £60-£130
• Dependent on the amount of hot water used
• Available for households on and off the gas grid – those without mains gas
have the most potential to save on fuel bills and decrease carbon emissions
Renewable Heat Incentive
The Domestic RHI
What to do before applying
10 Renewable Heat Incentive
Get an updated EPC to verify loft and cavity wall insulation has been installed
You must install loft and cavity wall insulation if recommended in Green Deal Advice Report
If it is not possible to do this, evidence must be submitted to Ofgem as part of application
To apply you must have a Green Deal Assessment carried out for the property
Only exemptions are for those who build their own homes incorporating renewable heating system
Talk to an installer about your options and check advice with Ofgem website
What type of system might be right for your property
• Renewable heating systems work best in well insulated home.
Renewable Heat Incentive
The Domestic RHI
For those intending to apply
11 Renewable Heat Incentive
• Only the owner of an eligible heating system can apply. Requirements are:
Renewable heating system and the installer must be MCS certified
Must have had system installed on or after 15th July 2009
All of the heating system must be new – i.e. not used before commissioning date
If system installed on / after launch date, must apply within 12 months of commissioning
Public grants (not ECO, Green Deal or loans) deducted from RHI payments over 7 years
Renewable Heat Incentive
The Domestic RHI
Proof for application process
12 Renewable Heat Incentive
MCS certificate (or equivalent) number
EPC number
Green Deal Advice Report number
Declarations, personal information and bank details for payment
In some circumstances more info will be needed, such as second homes & homes retaining fossil fuel heating options
• Installer will register system on MCS database and provide certificate. System
owner must complete online application process and supply:
Renewable Heat Incentive
The Domestic RHI
New sustainability requirements
13 Renewable Heat Incentive
Biomass Suppliers List (BSL) will provide an easy way for participants to comply
All existing & new applicants MUST comply with criteria, from date legislation in force. This will impact any fuel purchased now but intended for use later
• Minimum 60% GHG emission saving relative to EU fossil fuel heat average
Spring 2014
• Land criteria introduced: UK Timber Standard for woody biomass; RED for other types
Spring 2015
Renewable Heat Incentive
The Domestic RHI
Responsibilities of scheme participants
14 Renewable Heat Incentive
Keeping heating system & metering equipment (if applicable) in good working order
Informing Ofgem if:
• Equipment breaks down and is not working while waiting for repairs
• Property is sold (with the heating system in) – new owners can apply
• Any changes made to heating system (e.g. – replacing part of system)
• Any changes to situation mean system needs to be metered
• There are any changes in circumstances
To continue to receive payments annual compliance declaration needs to be completed
• Ofgem will carry out series of desktop and site audits to verify declarations are accurate – these are randomly chosen to anyone could be selected
• Condition of joining scheme is to abide by the rules, which include:
Renewable Heat Incentive
The Domestic RHI
Treatment of ‘Legacy’ applicants
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Phase Who can apply
Months 1-3 New applications
Legacy that was not part–funded by RHPP
Months 3-6
New applications
Legacy that was not part–funded by RHPP
Legacy part funded by RHPP (applied for before 20th May 2013)
Months 6-12 New applications
All legacy applications
Year 2 onwards New applications only (within one year of commissioning date)
• For those who have already installed eligible systems, ‘Legacy’ applications will be
staggered:
Renewable Heat Incentive
The Domestic RHI
Social housing gets green heat • Hastoe Housing Association in Devon sourced
renewable heating systems for nine rural properties
• Electric storage heaters and open fires were
replaced by Nauru 6 kW ground source heat pumps
• Each GSHP cost £20,000, but £7,000 was covered
by RHPP grant. Can also apply for RHI funding
• Residents’ bills have more than halved, from £1,500
per year to around £720
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“Over the past few years, we have installed
hundreds of ground source heat pumps and
have found them to be the most efficient and
cost effective heating solution on the market.”
Renewable Heat Incentive
The Domestic RHI
For more information:
17 Renewable Heat Incentive
Domestic
Pre-application enquiries by ESAS in England & Wales: 0300 123 1234
Or contact Home Energy Scotland: 0808 808 2282
Ofgem deliver scheme – guidance and online application form
www.ofgem.gov.uk/domestic-rhi
Non-domestic
Ofgem deliver scheme
Guidance on www.ofgem.gov.uk
RHI enquiry line: 0845 200 2122
Email: [email protected]