This major new scheme provides financial support
for renewable heat generation. This promises to be a huge boost to
the wood fuel sector in Scotland.
of the Renewable Heat
opened the Renewable Heat Incentive (RHI) on 25th November 2011,
for industrial, commercial, public sector and not-for-profit and
community installations. Since Nov 2011 support for domestic
schemes has been in the form of a one off Renewable Heat Premium
Payment, this will be replaced by the complete Domestic RHI scheme
in Spring 2014.
Full information on the non
domestic RHI and guidance for
applicants can be found on DECC's
website here, information for the domestic RHI can
All wood fuel consumers who install (or have recently installed)
a wood fuel system and use it to generate heat will be eligible for
Note: if the system is owned by an energy services company
(ESCo) they will be eligible for RHI, not the consumer.
Key features of the scheme:
- System of tariffs based on amount of heat generated
- Quarterly payments for 20 years for the
non-domestic RHI, from the date consumers enter
the scheme, quaterly payments for 7 years for the domestic
RHI from date of entry.
- All eligible installations since 15 July 2009 will qualify
- Until March 2014, domestic consumers are eligible for
some financial support towards the cost of installation via the
Renewable Heat Premium Payment (RHPP). Suport under this
scheme is also available for Social Landlords to install renewable
heating technologies in their housing stock. (note that
applications for social landlords Reach-Out competition close on
27th September 2013). For full details of the RHPP scheme click here.
- The scheme does not cover biomass direct air heating, only heat
produced via the medium of hot water.
RHI regulations are
In the first phase, long-term tariff support will be targeted at
the big heat users - the industrial, business and public sector -
which contribute 38% of the UK's carbon emissions. Under this phase
there will also be some support for households through the
Renewable Heat Premium Payment.
In this phase, payments will be based on metered heat. Deeming
will not be included.
The second phase will see households moved to long-term tariff
support similar to that offered to the non-domestic sector in the
first phase. At the moment this development is expected to take
place in Spring 2014, see this news
item for the detail. The regulations governing the Domestic RHI
were laid before Parliament in February 2014,
click here for details.
Applicants for the domestic RHI will need to complete a Green
Deal Assessment before submitting their application and must ensure
they have met minimum loft (250mm) and cavity wall insulation
requirements, where appropriate. All installations and installers
must be Microgeneration Certified Scheme certified (or certified by
an equivalent scheme).
To access the full and up to date information on the proposals
for the Domestic RHI,
RHI non domestic tariffs are published here
RHI & Combined Heat and Power (CHP)
A new renewable CHP installation currently has two options
through which to receive support:
New CHP stations accredited on or after 1st April 2015 will
receive support from a combination of the RO and RHI.
Ofgem have published guidance
for anyone involved with the RHI and sets out how Ofgem
will administer the scheme.
For full details on how to apply for the RHI see the How
to Apply webpage,
click here to access. This page includes the following:
· sight of all the questions in the
application form so you can prepare in advance.
· a checklist and help with
answering some of the key questions
· screenshots and step-by-step
instructions on how to use the RHI Register.
For those already accepted onto the scheme
Ofgem has also provided a Guide to Meter Readings and Your
click here to access the page.
Ofgem also have an enquiries line: 0845 200
2122 open 8:30am until 5pm Monday to Thursday, and 8:30am
until 4:30pm on Fridays.
Alternatively, email RHI.Enquiry@Ofgem.gov.uk
In order to ensure the sustainability of biomass fuel,
sustainability criteria for the Governments Renewable Heat
Incentive scheme, will dictate that, from April 2014, in order to
be eligible for the RHI, biomass installations will be required to
demonstrate, either through reporting or sourcing from an approved
supplier, that their biomass meets a greenhouse gas lifecycle
emissions limit target.
Biomass installations of 1 MWth capacity and above will be
required to report quarterly on the sustainability of their biomass
feedstock for combustion and where they are used to produce biogas.
This information will include the amount of biomass used, its type
and form, country of origin and whether an environmental
accreditation has been met. DECC intends to implement
land-use sustainability criteria by 1 April 2015.
Metering requirements were simplified in September 2013 -only
the minimum number of meters necessary to calculate the RHI payment
are now required. They also allow heat loss from external pipework
to be disregarded (in certain circumstances) where can be
considered it properly insulated. In addition, applicants who can
prove that it is either physically or financially overly burdensome
to install a heat meter, will instead be allowed to submit a heat
loss calculation in place of installing additional meters.
For RHI accreditation of any new biomass installations from the
24th of September 2013, Ofgem will require proof that the boiler
complies with flue emissions limits of 150g/GJ of nitrogen oxides
and 30g/GJ of particulates. Ofgem have not yet confirmed exactly
how they intend to police this.
From September 2013, all applicants with biomass boilers will
need to submit an RHI emission certificate or a valid environmental
permit with their application. For further information, see the
click here to access.
Accredited installations can be relocated, providing the
installation meets the necessary requirements at its new
Enhanced Capital Allowances
and the RHI
While there is nothing in the RHI Regulations that prevents
applicants applying for ECA in addition to the RHI, HMT has
recently changed the rules regarding eligibility for ECA.
Following their consultation into Capital Allowances: Feed-in
Tariffs and the Renewable Heat Incentive, HMRC states that: "From
April 2012 (or April 2014 for CHP installations) ECAs will not be
available in respect of expenditure on plant or machinery when it
generates electricity or heat (or produces biogas or biofuels) that
attracts tariff payments under either of the FiTs or RHI schemes.
ECAs may still be claimed (subject the other conditions of the ECA
schemes) in respect of expenditure on such equipment as long as no
tariffs are paid. Any ECAs given, in respect of expenditure
incurred from April 2012 (or April 2014 for CHP installations),
will be withdrawn if FITs or RHI tariffs are paid
For further details, please follow this link or contact