Renewable Heat Incentive
Currently in the UK, just under half of our carbon emissions are created by heating buildings and water. Over 99% of this is predominantly supplied by fossil fuels and less than 1% by renewable energy. The proposed Renewable Heat Incentive (RHI) has been designed by the Department of Energy & Climate Change (DECC) to alter this way of living, so that by 2020, 12% of heat is generated by renewable technology, thereby cutting carbon emissions and allowing the UK to hit its binding EU targets.
From October 2012, the RHI guarantees long-term payments for the end user on specified renewable installations. It includes all types of heating, from households to factories and public sector buildings. The tariffs, which will be annually adjusted with inflation, will be paid for a number of years to eligible technologies installed since 15th July 2009 with payments being made for each kWh of renewable heat produced.
The end user can only claim cash-back through the RHI if the product and installer are both MCS approved. MCS is an independent scheme for the certification of microgeneration products and installers. It is designed to assess these products and installers against robust criteria, which provides greater protection for consumers when fitting renewable technologies to their property.
Solar Thermal Water Heating systems can also qualify for the RHI if they are certified under the Solar Keymark Scheme and installed by an MCS Approved installer. Solar Keymark is the quality label for solar thermal products in Europe. By obtaining Solar Keymark, the manufacturer is clearly demonstrating the consistent factory made quality of the product. Comparable to ISO9001, the Keymark certifies compliance of a product with the relevant European standards and requires independent tests by an accredited bodies and the existence of a quality management system.
Premium payments
The RHI Tariff payments commenced in 2012, however in the interim, up to 25,000 installations from July 2011 will be supported by a RHI Premium Payment to help people cover the purchase price of green heating systems. Rates as of the 20th May 2013 have been published as follows:
- Solar Thermal – £600/unit
- Air Source Heat Pumps – £1,300/unit
- Biomass boilers – £2,000/unit
Households claiming this premium will be eligible for a RHI tariff from October 2012 when the Green Deal begins, as will anyone else who has had eligible equipment installed from July 2009. There will be clear criteria in order to qualify for the payment e.g. well insulated home based on its energy performance certificate, agreeing to give feedback on how the equipment performs, etc.
To view our statement regarding the recent RHI (Renewable Heat Incentive) consultation document for Biomass Condensing Boilers, please click here.
Further information on the Renewable Heat Incentive is available from the Department of Energy and Climate Change (DECC). Just call: 0300 060 4000 or visit their website: www.decc.gov.uk