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DECC announce RHI Consultation

DECC have today (20th September 2012) announced their consultation on the RHI - domestic phase 2. This consultation is a proposal and therefore details may change before policy is announced and laid before parliament.

Details of the consultation have been summarised below.

Eligible Recipients

Any domestic customer retrofitting into their main residence*

Any domestic customer who has installed an eligible system since 15th July 2009**

*must meet energy efficiency criteria i.e. Green Deal Assessment

**Government funding already received (e.g. RHPP) is subtracted from the RHI payable

"Proposal is that in order to receive the domestic RHI, consumers would be required to have completed all green ticks on their Green Deal assessment that relate to the thermal efficiency of the house."

These likely to include cavity wall insulation, loft insulation, draught proofing etc. Householders must be able to demonstrate that these measures have been implemented by presenting an updated EPC.  

"Proposal that anyone interested in receiving the RHI would need to undertake a Green Deal assessment which involves an authorised Green Deal assessor visiting the house to assess the current energy efficiency of the property and the particular usage of the occupants, in order to advise as to which improvements might be most suitable for installation."

New build - DECC currently procuring more market research. Any tariff would only be available on new developments after launch of RHI and where renewable heat is considered to be addational to the compliance with Building Regulations.

Eligible Technology

  • Biomass Boilers
  • Ground Source Heat Pumps
  • Air Source Heat Pumps
  • Solar Thermal

Bivalent systems permitted except in the case of biomass but these systems need to be metered.
All products must be MCS accredited.
Maximum output of 45kW

Proposed Tariffs

        Biomass         ASHP          GSHP        Solar Thermal    
Tariff (p/kWh)              5.2-8.7      6.9-11.5          12.5-17.3          17.3


Heat output will be deemed based on technology, property and design calculations.
Proposing that payments to be made quarterly or annually.

"The approach to budget management that we are proposing is based on degression, which would lower the tariffs payable for individual technologies if growth and costs exceed expected levels."

Timescale

Beginning of April 2013       

Policy announced 

June-July 2013 

Legislation laid before Parliament and debated

Late August 2013

 

Anticipated launch of RHI domestic

Impact

DECC modelling shows that on the basis of the upper limit of the range, the RHI could result in around 3.3TWh/year (approx. 380,000 installations) of additional renewable heat by 2020.

The full consultation document is available here.

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