Renewable Heat Incentive - Frequently Asked Questions
The Renewable Heat Incentive is similar to the Feed-in Tariffs, a comparable scheme for electricity which went live in April 2010. The first phase of the Renewable Heat Incentive will come into force in July 2011.While the Renewable Heat Incentive is similar to the Feed-In Tariffs, there are some important differences, and in particular:
- It will be paid for by the Treasury not by energy users.
- There is no ‘National Grid for Heat’ and so importing and exporting heat is not relevant.
- It will be introduced in phases, with residential schemes not eligible until Phase 2. - See below
The Householder
Further details of the RHI Premium Payments and qualifying criteria will be announced in May 2011 and the Government is now working with industry to define the details. Below is a summary of the recent Government publication and likely requirements.
 The proposed one-off RHI Premium Payment is £850 for AWHP and £300 for solar thermal systems
- Both the product and the installer have to be MCS approved at the time of installation.
- The home will have to be well insulated and it is likely that this will be based on its Energy Performance Certificate.
- Homeowners will have to provide feedback on how the equipment works and this might need to be submitted regularly for example via an on-line form
In a second step, an RHI tariff is planned from October 2012 to coincide with the introduction of the Green Deal financing scheme for homes. Installations completed after July 2009 which meet the full qualifying criteria will be able to apply for the full RHI tariff. Those who have received the RHI Premium Payment will also be able to apply for the full RHI tariff. The Government plans to publish proposals on the RHI tariff for households and the tariff rates in Autumn 2011.
Industrial, commercial and public sectors
The RHI Tariff scheme will be introduced during summer 2011. Air-water heat pumps will not be included because the Government is still looking for further information about their running performance. This will be re-evaluated and may be included in a second step from 2012.
There will be an RHI Tariff for solar thermal installations less than 200kWth. The proposed payment rate is 8.5p/kWh for 20 years.
Installations since 15th July 2009 will be able to apply where they meet certain qualifying criteria. The installations will have to include heat meters to measure the amount of renewable heat delivered. Only MCS or Solar Keymark approved products will be eligible and the installation must have been completed by an MCS approved installer.
How long are the tariffs paid for?
The tariffs last 20 years for all RHI installations. Once you start at a given tariff, it is guaranteed for the full period shown above and is index linked. The RHI IS expected to be open for new registrations until at least 2020.
Do the tariff levels ever change?
For those who are already registered, tariffs will only change in accordance with the index-linking described above. For future entrants who are not yet registered, tariff levels might change:
- When the scheme is reviewed (every four years, but the first one to take effect in 2015), or
- Subject to the principle of degression for systems installed after April 2012. (See what is degression below)
Plans for tariff changes for people who start later in the scheme
Once a system has been installed and registered for the Feed-In Tariffs, the tariff levels are fixed and subject only to index-linking for inflation.
What is degression?
Some technologies are expected to get cheaper as volumes build in the future, so the Government has decided to adjust some tariff levels for systems installed in future years.
This principle has been established for the Feed-In Tariffs, where the degression levels have been published annually to 2020
How does it apply to the RHI?
The government wants to adopt a different approach for the RHI, which isn't preset by date, but is triggered by deployment levels.It hasn't yet finalised how this will work, and will publish and consult on further proposals with Phase 2 of the scheme
For more indepth details on RHI Click here
Contact The Green Energy Team today
Please note that this information is intended as a guide only and not a statement of law.
The Green Energy Team / Blueflame Services accept no responsibility for errors or omissions
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