RHI Approved – Domestic RHI Part 1
How to Save money on your renewable energy costs with a Domestic Renewable Heat Incentive (RHI).
Renewable Energy Targets
In an attempt to combat climate change by reducing green house gas emissions and to become less reliant on imported fuel energy, the UK Government has set itself a target of generating 15% of energy output through the use of renewables by 2020. At the time of writing, they have some way to go to achieve that target with current renewable energy output in 2015 hovering around the 4% mark of total energy output. This is in contrast to renewable energy outputs in other European Union countries such as Germany and France. Both of whom have so far achieved levels of renewable energy output in excess of 30%.
Renewable Heat Incentive – RHI
In an attempt at “catch up”, the UK Government, through the Department of Economics and Climate Change (DECC) have introduced the Renewable Heat Incentive (RHI), a government initiative to encourage more people to use renewable energy. The official Government statement is outlined below:
“The Renewable Heat Incentive (RHI) is the Government’s principal mechanism for driving forward the transition to deployment of renewable and low carbon heat over the coming decades. The RHI is a key contributor in achieving the UK’s share of the European Union’s (EU) renewable energy targets and the Carbon Plan, which provides the two key objectives of the scheme:
- To increase the deployment of renewable heat technologies in order to keep the UK on track to meet the 2020 target in the most cost effective way. The Renewable Energy Strategy 2009 outlined that heat could contribute 12 % (72 TWh) towards meeting this target.
- To contribute to the UK’s carbon targets of achieving an 80% reduction by 2050″
The scheme was first announced in March 2011 and offered financial support for renewable heating technologies such as Solar Thermal, Biomass solutions and air and ground source heat pumps.
In simple terms, payments were awarded for generating heat . The scheme was initially aimed at business and public bodies with index linked payments over a 20 year period. The fuels used in biomass technologies were termed RHI Approved.
Domestic Renewable Heat Incentive – Domestic RHI
In early 2014, the second phase of the scheme was launched – the Domestic Renewable Heat Incentive. This second phase was broadened to include domestic households. Domestic Renewable Heat Incentive payments are given to households over a 7 year period and are intended to cover the costs of a qualifying installation utilising the same renewable technologies.
Renewable energy heating solutions installed in a domestic household in advance of the scheme, at any point after 15th July 2009, are also able to benefit from the Domestic Renewable heat Incentive (RHI). Such applications are termed “Legacy Applications. Again, the fuels used in biomass technologies are termed RHI Approved.
Summary of the Domestic Renewable Heat Incentive – Domestic RHI
The main details of the scheme are as follows:
- The Department of Energy and Climate Change (DECC) opened the scheme to applications in Spring 2014 and are administered by Ofgem.
- The financial support is paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating system. The current rates are listed below.
|Air Source Heat Pump||Biomass||Ground Source Heat Pump||Solar Thermal|
|Tariff (p/kWh renewable heat)||7.3||10.98||18.8||19.2|
- for biomass the renewable heat generated will be based on an estimated figure of heat demand from an Energy Performance Certificate (EPC)
- for heat pumps the renewable heat generated is based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency
- for solar thermal systems the renewable heat generated is based on the estimate of system performance completed as part of an Microgeneration Certification Scheme (MCS) installation
- to help improve performance of renewable heating systems, there is an extra incentive for applicants who install metering and monitoring service packages, of £230 per year for heat pumps and £200 per year for biomass boilers
- The scheme covers single domestic dwellings and will be open to owner-occupiers, private landlords, Registered Providers of Social Housing, third party owners of heating systems and self-builders. It will not be open to new build properties other than self-build.
Your MCS accredited installer will be able to advise you on equipment which meets the Domestic RHI criteria. HETAS maintain a list of MCS installers which can be found HERE.
OFGEM also publish a list of eligible products (PEL) HERE
Our online shop contains all of our RHI Approved Fuels including our A1Enplus 6mm wood pellets available blown or bagged.
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