Renewable Heat Incentive: expanding the non-domestic scheme
Download the full outcome
Detail of outcome
The Government response summarises public responses to the consultations ‘Expanding the non-domestic RHI’ and ‘Air-water heat pumps and energy from waste’ as well as responding to Calls for Evidence related to biopropane, ground source heat pumps, landfill gas and large biomass installations.
The document sets out our decisions and rationale for expanding the non-domestic RHI. Key policy proposals, which remain subject to Parliamentary and State aid approvals, are:
- Eligibility for air-water heat pumps and medium and large biogas combustion installations in the non-domestic RHI
- Dedicated and increased tariffs for CHP and Deep Geothermal installations
- Improvements to budget management and other scheme details
Original consultation
Consultation description
This consultation seeks views on the government’s plans to expand the current non-domestic Renewable Heat Incentive scheme. The expansion of this scheme 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. Also at the forefront of government thinking is energy efficiency and we are considering what requirements are appropriate for non-domestic installations.
Calls for evidence
In addition to the 2 non-domestic consultations, we are running a series of ‘calls for evidence’ relating to different technologies. Please note that these calls for evidence are being issued as separate documents and are being run to different timescales with different deadlines for response.
Ground source heat pumps
The existing tariff for ground source heat pumps has not brought forward the number of installations of this technology we expected. Discussions with the industry have indicated that this may be due to inaccuracies in our assumptions about the costs, efficiencies and load factors of installations. We are issuing a call for evidence to verify our current assumptions.
Closing date: 18 October 2012
Large biomass tariff (>1MW)
A European Commission state aid decision resulted in the RHI large biomass tariff being reduced from 2.7p/kWh to 1p/kWh. Subsequent projections of fossil fuel costs suggests that this should be sufficient to incentivise significant large scale biomass. However, market evidence suggests that very few projects are going ahead under the current tariff with a much greater proportion than 50% being cancelled following the change to the tariff. Therefore, we intend to use this call for evidence to verify our assumptions.
Closing date: 18 October 2012
Biopropane
A relatively recent proposal from the industry involves importation of biopropane for use in the UK. Initial research suggests this would present good value for money in terms of renewable targets – associated tariff likely to be low - but importing this gas would not promote green growth and UK heat self sufficiency to the same degree as other renewable technologies. This is unlike any other technology supported under the RHI and we do not have sufficient data to make any decisions. In order to obtain more information we are launching a call for evidence on this technology.
Closing date: 2 November 2012
Landfill gas
Landfill gas is a declining resource and has not previously been considered as an RHI supported technology. We are launching a call for evidence asking for more information on this technology.
Closing date: 2 November 2012
Documents
Last updated 4 December 2013 + show all updates
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Government response published
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First published.