Renewable Heat incentive (RHI) Update: New Proposals

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On the 20th September, The Department For Energy and Climate Change (DECC) announced their plans for the future with producing three consultations.

RHI: Proposals for a domestic scheme

The UK Government proposes that the Domestic RHI will support the installation of ground and air source heat pumps, biomass boilers and solar thermal panels and will work in the same manner as the existing commercial RHI and the Feed-in Tariff (FiT) scheme, where a subsidy is provided through tariff based payments for every unit of renewable heat generated from renewable heat technology.

The UK Government proposes that the Domestic RHI will support the installation of ground and air source heat pumps, biomass boilers and solar thermal panels and will work in the same manner as the existing commercial RHI and the Feed-in Tariff (FiT) scheme, where a subsidy is provided through tariff based payments for every unit of renewable heat generated from renewable heat technology.

DECC has stated in the proposal that the domestic RHI is aimed at any householder looking to replace their current heating system with a renewable heating technology as well as supporting any householders who have installed an RHI-eligible technology since July 15,2009.

The Proposals Highlights:

  • The Domestic tariff period: 7 Years
  • Tariff Rates:   - Biomass Boilers 5.2 to 8.7 pence per kWhrs
  • - ASHP “Air Source Heat Pump” 6.9 to 11.5 pence per kWhrs
  • - GSHP “Ground Source Heat Pump” 12.5 to 17.3 pence per kWhrs
  • - Solar Thermal 17.3 pence per kWhrs
  • All installations will need to conform to MCS “Micro Generation Certification Scheme”
  • The tariff is to be based on deemed heat requirements, to be assessed by an MCS installer.
  • Heat pumps will need to meet minimum standards of efficiency, currently considering SPF “Seasonal Performance Factor” of 2.7 using MCS accreditation standards.
  • A Green Deal assessment must be completed on the property to be able to claim the RHI tariff.

RHI: Proposals to existing non-domestic scheme

This consultation includes proposals for new or different support for technologies including air source heat pumps, combined heat and power, large scale biogas combustion and deep geothermal installations.

We will keep you updated when the responses of the consultation are out early 2013.

DECC Web-site link: