After several years in the pipeline, DECC launched the Domestic Renewable Heat Incentive (RHI) on the 9 April 2014. Aimed at householders, private and social landlords and not for new build applicants (except for self-builders) it is of huge importance for Wales as it will benefit many homeowners and tenants who are not on the mains gas supplies. Ofgem are administering it on behalf of DECC.
The non-domestic scheme was initially launched in November 2011 with later revisions in December 2013.
Many households could soon benefit from installing renewable heating and hot water systems into their homes, using financial support from the Domestic Renewable Heat Incentive (RHI).
The incentive is particularly aimed at properties which are off the gas network, which will benefit most in fuel bill savings and decreased carbon emissions. It is especially relevant to homeowners in Wales, where 16% of properties are off gas (compared to 9% in England, DECC report).
The scheme will work alongside the Green Deal, which was set up by the UK Government to help people save money on their bills by making homes more energy efficient. The RHI will provide payments for seven years to homeowners or social or private landlords and for twenty years through the non-domestic scheme, to owners of commercial, public and industrial buildings if they install eligible renewable heat technologies.
Different tariffs apply according to the renewable heat technology, for the domestic scheme:
Technology Tariff
Air-source heat pumps 7.3p/kWh
Ground and water – source heat pumps 18.8p/kWh
Biomass-only boilers and biomass pellet stoves with integrated boilers 12.2p/kWh
Solar Thermal Panels (flat plate/evacuated tube) for hot water 19.2p/kWh
The details of the scheme include issues for retrospective or legacy installations, metering requirements if applicable and the product eligibility file which lists models according to technology.
Increasing the use of Low Carbon Technologies
Please note that not all biomass boilers with Microgeneration Certification Scheme (MCS) accreditation are eligible for the scheme, and the introduction of emissions standards different to the EN norm requirements has removed the possibility of wood burning boiler stoves being included. All biomass boilers will need to have emission certificates to evidence that they comply with the emissions requirement, and also satisfy sustainability requirements relating to greenhouse gas emissions and the sustainability of the fuel source.
A clause introduced before the regulations were brought before Parliament states that a biomass boiler must not be designed to produce heat for cooking purposes. Some pellet boiler manufacturers are in discussion with DECC and examining this policy in detail, to try and resolve the uncertainty, as some models are included in the non-domestic scheme but not the domestic version.
For domestic applicants there is a requirement to receive a Green Deal Assessment and obtain an Energy Performance Certificate (EPC), to ensure the property has minimum energy efficiency standards, including cavity wall and loft insulation. There is a lack of clarity around properties with cavities that are either not suitable for filling or where to do so would not be cost effective. There are also inconsistencies in the detail of insulation requirements and also the timing of the Green Deal Assessment, particularly for properties undergoing renovation. Only time will tell how successful the RHI will be, but it is branded as the world’s first renewable heat promoting scheme, and many households in Wales should see the benefit of switching from fossil fuel systems to the latest renewable heat technologies.
