Announcement

Next steps on Renewable Heat

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Progress on support for renewable heat hots up today with the publication of three consultations on the Coalition’s Renewable Heat Incentive…

Progress on support for renewable heat hots up today with the publication of three consultations on the Coalition’s Renewable Heat Incentive scheme (RHI). The RHI, the first of its kind in the world, was launched for the non domestic sector in November last year, with a scheme for householders intended to open in Summer 2013.

Renewable Heat Incentive for householders

Proposals on long term support for householders who install renewable heating kit such as biomass boilers, heat pumps and solar thermal in their homes across the nation have been published for consultation today. The RHI for householders, to be managed by Ofgem, is aimed at any householder looking to replace their current heating with renewable heating kit or householders who have installed any such technology since 15 July 2009. It is intended that householders will get paid for the heat expected to be produced by their installed technology.

Key proposals in the consultation include:

  • Indicative tariff ranges for air source heat pumps (6.9-11.5p/kWh), biomass boilers (5.2-8.7p/kWh), ground source heat pumps (12.5-17.3p/kWh) and solar thermal technologies (17.3p/kWh) that are MCS certified and meet relevant required standards
  • Payments for householders over seven years for each kWh of heat produced for the expected lifetime of the renewable technology and based on deemed heat usage
  • Tariff levels set to provide a better return for householders living off the gas grid
  • Budget management system similar to one introduced for the Feed-in Tariffs scheme
  • Minimum energy efficiency requirements based on Green Deal assessments

Energy and Climate Change Minister Greg Barker said:

“We need to revolutionise the way we heat our homes and businesses and move away from expensive fossil fuels, not only to cut carbon but to help meet our renewables targets and save money on bills.
“Our proposals aim to encourage even more uptake of clean green heating in industry and in our businesses. We have also set out our views on long term support for those who invest in low carbon kit in their homes and we look forward to hearing your thoughts.”

The closing date for this consultation is 7 December 2012.

There is already cash available for renewable heat for householders under the Renewable Heat Premium Payment (RHPP) scheme, set to run until March 2013. The Department for Energy and Climate Change (DECC) has recently announced the winners of the RHPP Social Landlord Phase 2 ‘Top up’ competition and confirmed the list of community groups through to the next stage of the RHPP communities competition.

Renewable Heat Incentive for commercial, industrial and community customers

DECC has today published two consultations on expanding the RHI scheme for commercial, industrial and community customers to increase uptake of renewable heating kit in this sector.

The first consultation looks at the broader expansion of the scheme and closes on 7 December 2012. The second consultation focuses on air to water heat pumps and energy from waste and closes on 18 October 2012.

Key proposals to expand the scheme include:

  • Inclusion of heating only Air to Air heat pumps with a proposed tariff of 0.97p/kWh for all sizes of installation
  • Inclusion of Air to Water heat pumps with a proposed tariff of 1.7p/kWh for all sizes of installation
  • Inclusion of biomass direct air heaters with a proposed tariff of 2.1p/kWh under 1MW and 1p/kWh over 1MW
  • Extension of biogas combustion tariffs to installations over 200kW
  • Introduction of a specific tariff for heat from biomass CHP of a proposed 4.1pkWh
  • Introduction of bioliquid CHP tariff of 4.1p/kWh
  • Increased tariff for deep geothermal installations from 3.4 p/kWh to 5p/kWh
  • Increased range of waste feedstocks eligible for support
  • Minimum energy efficiency requirements for district heating, commercial and industrial space and water heating
  • Continuation of exclusion of reversible Air to Air heat pumps from the scheme

DECC will be running a number of events across the country to provide opportunities to ask questions about the consultations and feed in ideas. Further details on these events, including how to register, will be published on the DECC website shortly.


Notes for editors

  1. There are a number of areas in the consultations on which evidence and views are sought. These are likely to affect the level of subsidy and the final make up of the scheme. Investment decisions should therefore not made on the assumption that these proposals will not change.
  2. DECC’s Heat Strategy was published in March 2012.
  3. The RHI is designed to help the UK meet its target of 15 per cent of our energy from renewables by 2020. Renewable heat will contribute approximately a third of this overall energy target.
  4. The consultation on RHI for householders.
  5. Further details on the RHI for non-domestic customers.
  6. The consultation on the expansion of the RHI non-domestic.
  7. The consultation on Air to Water Heat Pumps and Energy from Waste.
  8. More details on the RHPP scheme.
  9. Details of successful bidders through to the next round of the RHPP communities scheme.
  10.  Social landlords allocated further funding under the RHPP Social Landlord Phase 2 ‘Top up’ scheme.