It's been a long time coming, but at the end of last week the Department of Energy & Climate Change (DECC) finally announced the details for the domestic Renewable Heat Incentive, with the figures expected to provide a much needed boost to the UK's renewable energy industry.
The RHI will allow householders to be paid hundreds of pounds a year for any energy generated by renewable sources such as solar thermal panels, biomass boilers and heat pumps. By persuading people to install and switch over to these methods, it is believed Britain will successfully be able to meet renewable targets and cut down the country's carbon footprint, as well as save householders money on energy bills.
The tariff levels have been set at:
- 7.3p/kWh for air source heat pumps
- 12.2p/kWh for biomass boilers
- 18.8p/kWh for ground source heat pumps
- At least 19.2 p/kWh for solar thermal
Energy & Climate Change Minister Greg Barker said: "The Coalition is committed to helping hardworking families with the cost of living. Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.
"Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector"
The scheme will be made available to homeowners, private and social landlords, third party owners of heating systems, people who build their own homes and anyone who has installed a renewable heat system since 15th July 2009. It currently supports air to water heat pumps, biomass only boilers and biomass pellet stoves with back boilers, ground and water source heat pumps, flat plate and evacuated tube solar thermal panels.
Applicants must complete a Green Deal Assessment before submitting their application and ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where appropriate. All installations and installers must be MCS certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute.
The DECC is currently finalising the details of the expansion of the non-domestic RHI scheme and will confirm what comes next in Autumn alongside the outcome of the tariff review. The DECC's aim to introduce these changes from Spring 2014 onwards remains unchanged.
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Heating, Ventilation & Plumbing Magazine
Following the mixed response to the first official Green Deal figures, renewable energy measures have taken another hit as the frequently delayed domestic Renewable Heat Incentive hits another snag.
Last week Chancellor of the Exchequer George Osborne released his Comprehensive Spending Review, which featured the new budget for the RHI in the 2015-16 period. The figure is £430 million, which is only £6 million more than the 2014-15 figure.
Neil Schofield, head of government and external affairs at Worchester, Bosch Group, has suggested that this will effectively kill the measure, which is still yet to be introduced properly. After a number of delays, its proper introduction is currently scheduled for Spring 2014.
He went on to say: "The Chancellor is sending a clear message that the future is not renewable energy. The constant delays to the introduction of domestic RHI have led many in the heating industry to believe that there is no real commitment from the Coalition Government towards domestic renewables. The new policy of starving domestic RHI of vital cash effectively sounds the death knell for the scheme."
The domestic RHI is a scheme set to offer home owners significant financial rewards for installing renewable heat technologies such as biomass boilers, air source heat pumps, ground source heat pumps and more. These rewards come on top of the considerable fuel savings that come from switching over to renewable heat products.
Via Installer Online
The Government has sparked more frustration from industry members as it announced yet another delay to the start of the long-awaited Renewable Heat Incentive (RHI).
The scheme, which was designed to encourage renewable heating systems to be installed in domestic properties and offer money towards those who have fitted renewable heating products, was meant to launch this Autumn but has now been pushed back until Spring 2014.
Greg Barker, the Energy and Climate Change Minister, said: "The RHI, which has been available for non-domestic investors for over a year, is a key part of our approach to cutting carbon and driving forward the move to more sustainable low carbon heating alternatives."
"We remain committed to introducing an incentive scheme for householders too, and have set out an updated timetable for its launch alongside new plans to extend our renewable heat voucher scheme in the meantime."
However this isn't enough for many leading industry members, who have vocally expressed their disappointment at the delay. Jim Moore, of leading heating and boiling manufacturers the Vaillant Group has said: "The Government now needs to deliver on its latest deadline to assist in stimulating increased uptake of renewables in the UK as has been demonstrated as effective in so many European markets."
Elsewhere, chief executive of the Micropower Council Dave Sowden has commented: "Taken with the delay in confirmed the next steps of the 'zero carbon homes' policy, the announcement is forcing the industry to question whether the Coalition is serious about promoting domestic renewable heat during this Parliament."
Coinciding with this announcement was also an action plan looking at the potential to cut emissions from heat across the whole of the UK economy. It focuses on a number of key actions in an attempt to spur on the move to low carbon heating alternatives and drive forward green growth. These include;
- A £9 million package to help local authorities get heat network schemes up and running in towns and cities across the country, with a new Heat Networks Delivery Unit to sit within the Department of Energy and Climate Change (DECC) providing expert advice.
- £1 million for Manchester, Leeds, Newcastle, Sheffield and Nottingham to help them develop heat networks.
- 100 green apprenticeships to be funded primarily for young people in small scale renewable technologies.
- Up to £250,000 for a new first-come-first-served voucher scheme for heating installers to get money off the cost of renewable heating kit installation training, with up for £500 or 75% of the cost of the training per person.
- Working with individual industrial sectors to design long-term pathways to cut carbon across UK industry.