Domestic RHI Announcement

The Department of Energy & Climate Change have confirmed further details on the domestic Renewable Heat Incentive expected to commence at the end of 2013. Ed Davey made the announcement confirming the timescales for the introduction of the RHI, the tariff levels and further details on the Renewable Heat Premium Payments. Alongside this, funding will be made available to installers looking to train teams in fitting renewable heat technologies along with funding for apprentices.

With over 80% of heating used in homes, businesses and industry produced by fossil fuels and more than 33% of UK carbon emissions being generated from energy used to produce heat, DECC realise that the RHI is absolutely vital to meeting the legally binding carbon commitments. 

Energy Secretary Edward Davey commented:

“If we can increase the use of low carbon heating in our homes, businesses and across our economy, we can help reduce our dependence on costly carbon intense fossil fuels. Last year we launched the UK’s first ever heat strategy, to get us on the right pathway to decarbonisation and today we have published an update on the progress we have made so far, alongside a new set of actions specifically targeted at industrial heat, urban heat networks and heat in buildings. Many homes and businesses across the UK have already switched away from fossil fuels and are using kit like biomass boilers, heat pumps and solar thermal panels to provide heat, thanks to Government support, and I want to ensure even more householders and organisations get on board.”

Key actions in the RHI announcement include;

• A £9million 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.

• £1million for the cities of 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 to £500 or 75 per cent of the cost of the training course per person

• Working with individual industrial sectors to design long term pathways to cut carbon across UK industry

The Non Domestic Renewable Heat Incentive (RHI) scheme, launched for industrial and commercial customers in November 2011. DECC recently announced it is planning to carry out a review of the tariffs under this scheme to drive forward further uptake and has set out which technologies will be included in this review.

Energy and Climate Change Minister Greg Barker said: 

“The Renewable Heat Incentive, 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. So far over 1,000 groups have got on board, and today we have outlined details of our tariff review to help encourage even more organisations to invest. We remain committed to introducing an incentive scheme for householders too, and have today set out an updated timetable for its launch alongside plans to extend our renewable heat voucher scheme in the meantime.”

• Non domestic RHI tariff review: DECC plans to consult on increased tariffs for some technologies where the evidence suggests a change needs to be made. The tariffs and technologies to be included in the review are available online.

• Expanding the non domestic RHI: DECC consulted on expanding the non domestic RHI scheme to include further technologies in September 2012 and will confirm the way forward in Summer 2013.

The Government remains committed to introducing an RHI for householders, and has set out an updated timetable for its launch alongside plans to extend the Renewable Heat Premium Payment (RHPP) in the meantime.

• RHI for householders: Following on from the consultation on scheme design in September last year, the Government will confirm how a RHI for householders will work and publish the tariff levels in Summer 2013. It is expected that the scheme will be up and running for householders in Spring 2014. Research on householder views on renewable heat has also been published today, which will help inform the design of the RHI scheme.

• RHPP extension: The Renewable Heat Premium Payment (RHPP) scheme is being extended until the end of March 2014, ahead of the launch of the RHI for householders. This scheme, first launched in July 2011, offers money off the cost of renewable heating kit such as biomass boilers, solar thermal panels and heat pumps and is largely targeted at those living off the gas grid. The scheme was due to close at the end of March this year.

To find out more about the announcement, speak to your MCS Mentor or if your are not on an Easy MCS programme, join now, you can either apply online or via our application form or speak to a member of our MCS advice team for some free advice on Freephone 0800 882 43 12.