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.
Launch
of the
Renewable Heat Incentive
25th November
2011
DECC have formally
opened the Renewable Heat Incentive (RHI) for industrial,
commercial, public sector and not-for-profit and community
installations.
Full
information on the RHI and the full guidance for
applicants who wish to apply can be found on DECC's
website.
All wood fuel consumers who install (or have recently installed)
a wood fuel system and use it to generate heat will be eligible for
the scheme.
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 from the date consumers enter
the scheme
- All installations since 15 July 2009 will qualify for
support
- Until October 2012, domestic consumers will only be eligible
for some financial support towards the cost of installation
(Renewable Heat Premium Payment)
RHI regulations are
published here
Ofgem have published guidance
for anyone involved with the RHI and sets out how Ofgem
will administer the scheme.
Ofgem guidance is published here
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
Biomass tariffs
For small and medium scale biomass there will be a tariff
breakpoint at 1314 peak load hours per year. Below this, small
biomass will receive 7.6p/kWh and medium biomass will receive
4.7p/kWh. Above this both will receive 1.9p/kWh. Large biomass
receives a flat rate of 1p/kWh, see update above.
The first phase payments will be based on metered
heat.
RHI
tariffs are published here
Phased introduction
Phase 1
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.
Phase 2
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. This transition will be timed to align with the Green
Deal which is intended to be introduced in October 2012.
Reporting
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.
Full
details of the Renewable Heat Incentive are on the Department of
Energy and Climate Change website.