Government reveals plans for the domestic RHI

Published:  20 September, 2012

The government has published three consultation documents which outline its plans for both the domestic and commercial Renewable Heat Incentive schemes.

The domestic RHI is scheduled to begin in Summer 2013, while the non-domestic RHI was launched in November 2011. The domestic RHI, which will be managed by OFGEM, is aimed at any householder looking toreplace their current heating with renewable heating kit, or householders who have installed any such technology since 15 July 2009. It is intended that householders will get paidfor the heat expected to be produced by their installed technology.

• Payments for householders over seven years for each kWh of heat produced for the expected lifetime of the renewable technology and based on deemed heat usage.

• Tariff levels will be set to provide a better return for householders living off the gas grid

• Minimum energy efficiency requirements based on Green Deal assessments.

The closing date for this consultation is 7 December 2012.

Energy & Climate Change Minister Greg Barker said: “We need to revolutionise the way we heat our homes and businesses and move away from expensive fossil fuels, not only to cut carbon but to help meet our renewables targets and save money on bills.

“Our proposals aim to encourage even more uptake of clean green heating in industry and in our businesses. We have also set out our views on long-term support for those who invest in low carbon kit in their homes and we look forward to hearing your thoughts.”

The government has changes planned for the commercial, industrial and community RHI scheme, outlined in two consultation documents. The first consultation in this area looks at the broader expansion of the scheme and closes on 7 December 2012. The second consultation focuses on air to water heat pumps and energy from waste, and closes on 18 October 2012.

Key proposals to expand the scheme and to encourage take-up include:

• The inclusion of heating only air-to-air heat pumps, with a proposed tariff of 0.97p/kWh for all sizes of installation

• The inclusion of air-to-water heat pumps with a proposed tariff of 1.7p/kWh for all sizes of installation

• Inclusion of biomass direct air heaters with a proposed tariff of 2.1p/kWh under 1MW and 1p/kWh over 1MW

• The extension of biogas combustion tariffs to installations over 200kW

• Introduction of a specific tariff for heat from biomass CHP of a proposed 4.1pkWh

• Introduction of bioliquid CHP tariff of 4.1p/kWh

• Increased tariff for deep geothermal installations from 3.4 p/kWh to 5p/kWh

• Minimum energy efficiency requirements for district heating, commercial and industrial space and water heating

• Continuation of exclusion of reversible air-to-air heat pumps from the scheme.

Government is asking industry stakeholders to give their opinions on the plans.

The consultation on RHI for householders can be found online at http://www.decc.gov.uk/en/content/cms/consultations/rhi_domestic/rhi_domestic.aspx.

Further details on the RHI for non-domestic customers can be found here - http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/incentive/non_dom_rhi/non_dom_rhi.aspx - while the consultation document on the expansion of the RHI non domestic can be found here: http://www.decc.gov.uk/en/content/cms/consultations/rhi_exp_nondom/rhi_exp_nondom.aspx.

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