Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI)

Introduction of RHI

The introduction of the RHI will be phased, the first Phase
providing long-term tariff support for renewable heat technologies
in the non-domestic sector and not, as we had expected, for the
domestic sector. Air source heat pumps will not be eligible at
the start of the RHI, but are expected to be included in Phase
2, commencing from October 2012.
Why are air source heat pumps not eligible? (Phase 1)
DECC* claim more cost/benefit analysis is required, but we believe
they were:
- Influenced by the results of the recent, flawed EST trials
- Attempting to determine the actual ‘renewable heat’ element vs.
the proportion of electrical or fossil fuel input
- Misunderstanding information provided by industry.
Whilst the first Phase will only benefit the non-domestic sector. The
Government is introducing Renewable Heat Premium Payments
for the domestic sector.
A fund of approximately £15 million has been allocated to enable
payments to be made to households that install renewable heating
systems. These payments will include air source heat pumps.
The proposed premium payment for ASHPs is £850.

Eligibility
MCS certification (which is known to be one of the main criteria for
small/medium sized plants up to and including 45kW).
Further criteria will be announced in May 2011, two months ahead
of the anticipated parliamentary approval for the scheme.

Objectives of the Premium Payments Scheme: .
1.) To start July 2011
2.) To support up to 25,000 Renewable Heat installations in the
domestic sector
3.) To provide a fair spread of technologies across all regions of
Great Britain
4.) To develop a monitoring process to allow stakeholders to
understand and get the most out of renewable incentives
5.) Key focus on off-gas grid properties
6.) Provide clear eligibility criteria, including well-insulated homes
based on EPC**.
Under the RHI, it is intended that non-domestic installations that
meet eligibility criteria and were installed and commissioned on or
after 15th July 2009, will be able to claim RHI tariffs.

Important dates:
March 2011: RHI discussions began
May 2011: Renewable Heat Premium Payments criteria
announced
July 2011: Premium Payment Scheme starts (non-domestic
installations commissioned on or after 15th July 2009 to qualify).
October 2012: RHI Phase 2 starts.