Renewable Heat Incentive (RHI)

Opportunities for Social

Landlords in the RHI

[Name] [Date]

Renewable Heat Incentive

The Domestic RHI

Three good reasons to choose

renewable heat…

1. Now every building will be able to get an incentive if it

goes renewable – the RHI is a reality

2. Government has allowed for significant growth

year on year in renewable heat demand in domestic

and non domestic properties

3. Customers like renewable heat – easy to use and

adds value

2 Renewable Heat Incentive

Renewable Heat Incentive

The Domestic RHI

Customer satisfaction

• 85% satisfied with new installation

• 80% found installation process easy

• 60% believe RHT easier to use

• Majority think installation has added value to their

property

Initial data from RHPP evaluation

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Renewable Heat Incentive

The Domestic RHI

Heat is an issue for the UK

4 Renewable Heat Incentive

• 47% of UK energy use is in respect of heat and the UK spends around £32bn

on heat across our economy

• Around 1/3 of UK’s carbon emissions come from energy used to produce heat

• Under EU Renewable Energy Directive 2009 we have a binding commitment

to increase renewable energy use to 15% by 2020

Prepare for mass rollout in 2020s

Build sustainable supply chains Improve performance Reduce costs Reduce barriers to uptake

Legally binding targets have resulted in introduction of RHI

Full payment guaranteed once in scheme Incentivise roll out of renewable heat systems

Renewable Heat Incentive

The Domestic RHI

Which scheme is right for me?

5 Renewable Heat Incentive

Domestic Non-domestic

Eligibility

Property must have domestic EPC - single

domestic dwelling.

Home owners, social and private

landlords and self builders (not new build)

Third party owners not yet eligible

Commercial, industrial, public

sector and not for profit

Multiple homes (including District

Heating) – no exclusion for new

build properties

Payment

period

Payments made over 7 years (to

compensate for 20 years of benefits) Payments made over 20 years

Measuring

usage

Deemed renewable heat output (metered

if back up system or second home)

Eligible heat use is metered on

actual generation or use

Renewable Heat Incentive

The Domestic RHI

Social Landlords in the RHI

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Domestic RHI

RSLs can apply for and receive RHI payments for property / properties they own

Expectation that permission granted from tenants for installation / maintenance etc

For ALMOs, application must come from the owner of the heating system

Same tariff levels apply as for individual household applications

Non-domestic RHI

Single installations supporting multiple domestic properties are eligible

Could include district and community renewable heating

This could be, for example, a central biomass boiler for an apartment building

Or a network of pipes delivering heat from central location to multiple properties

Series of RHPP Social Landlords competitions provided £10m in funding for 4,200

installations in tenants’ homes (2011 – 2014)

Renewable Heat Incentive

The Domestic RHI

Can be cost-effective and viable alternative to individual installations

Reduces cost of energy for consumers

DECC offers support to local authorities in developing heat networks through Heat Networks Delivery Unit

RHI offers support for district heating through standard technology tariffs

Potentially a priority measure for ECO funding (under consultation)

Supplies heat from central source directly to homes / businesses through

network of pipes carrying hot water

District Heating / Heat Networks

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Renewable Heat Incentive

The Domestic RHI

Tariffs & Eligibility for the Domestic RHI

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Biomass only boilers

Biomass pellet stoves with integrated boilers

Air source heat pumps

Ground source heat pumps

Solar thermal panels - flat plate / evacuated tube only*

Eligible solar thermal panels

only provide hot water

Only one space heating

system per property

Can apply for solar thermal

for hot water AND a space

heating system

12.2p

12.2p

7.3p

19.2p

18.8p

Paym

ents

per

kW

h

Metering for second homes

& homes retaining

secondary heating options *Solar PV-T eligible for FiTs, but not domestic RHI at present

• Tariffs are dependent on the type of technology installed

Renewable Heat Incentive

The Domestic RHI

Quarterly payments in arrears for 7 years

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ASHP

• Between 10 and 35%

• If installed and operated properly

Biomass

• Between 15 and 40%

• Dependent on the price of wood fuel used

GSHP

• Between 25 and 40%

• If installed and operated properly

Solar Thermal

• Between £60-£130

• Dependent on the amount of hot water used

• Available for households on and off the gas grid – those without mains gas

have the most potential to save on fuel bills and decrease carbon emissions

Renewable Heat Incentive

The Domestic RHI

What to do before applying

10 Renewable Heat Incentive

Get an updated EPC to verify loft and cavity wall insulation has been installed

You must install loft and cavity wall insulation if recommended in Green Deal Advice Report

If it is not possible to do this, evidence must be submitted to Ofgem as part of application

To apply you must have a Green Deal Assessment carried out for the property

Only exemptions are for those who build their own homes incorporating renewable heating system

Talk to an installer about your options and check advice with Ofgem website

What type of system might be right for your property

• Renewable heating systems work best in well insulated home.

Renewable Heat Incentive

The Domestic RHI

For those intending to apply

11 Renewable Heat Incentive

• Only the owner of an eligible heating system can apply. Requirements are:

Renewable heating system and the installer must be MCS certified

Must have had system installed on or after 15th July 2009

All of the heating system must be new – i.e. not used before commissioning date

If system installed on / after launch date, must apply within 12 months of commissioning

Public grants (not ECO, Green Deal or loans) deducted from RHI payments over 7 years

Renewable Heat Incentive

The Domestic RHI

Proof for application process

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MCS certificate (or equivalent) number

EPC number

Green Deal Advice Report number

Declarations, personal information and bank details for payment

In some circumstances more info will be needed, such as second homes & homes retaining fossil fuel heating options

• Installer will register system on MCS database and provide certificate. System

owner must complete online application process and supply:

Renewable Heat Incentive

The Domestic RHI

New sustainability requirements

13 Renewable Heat Incentive

Biomass Suppliers List (BSL) will provide an easy way for participants to comply

All existing & new applicants MUST comply with criteria, from date legislation in force. This will impact any fuel purchased now but intended for use later

• Minimum 60% GHG emission saving relative to EU fossil fuel heat average

Spring 2014

• Land criteria introduced: UK Timber Standard for woody biomass; RED for other types

Spring 2015

Renewable Heat Incentive

The Domestic RHI

Responsibilities of scheme participants

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Keeping heating system & metering equipment (if applicable) in good working order

Informing Ofgem if:

• Equipment breaks down and is not working while waiting for repairs

• Property is sold (with the heating system in) – new owners can apply

• Any changes made to heating system (e.g. – replacing part of system)

• Any changes to situation mean system needs to be metered

• There are any changes in circumstances

To continue to receive payments annual compliance declaration needs to be completed

• Ofgem will carry out series of desktop and site audits to verify declarations are accurate – these are randomly chosen to anyone could be selected

• Condition of joining scheme is to abide by the rules, which include:

Renewable Heat Incentive

The Domestic RHI

Treatment of ‘Legacy’ applicants

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Phase Who can apply

Months 1-3 New applications

Legacy that was not part–funded by RHPP

Months 3-6

New applications

Legacy that was not part–funded by RHPP

Legacy part funded by RHPP (applied for before 20th May 2013)

Months 6-12 New applications

All legacy applications

Year 2 onwards New applications only (within one year of commissioning date)

• For those who have already installed eligible systems, ‘Legacy’ applications will be

staggered:

Renewable Heat Incentive

The Domestic RHI

Social housing gets green heat • Hastoe Housing Association in Devon sourced

renewable heating systems for nine rural properties

• Electric storage heaters and open fires were

replaced by Nauru 6 kW ground source heat pumps

• Each GSHP cost £20,000, but £7,000 was covered

by RHPP grant. Can also apply for RHI funding

• Residents’ bills have more than halved, from £1,500

per year to around £720

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“Over the past few years, we have installed

hundreds of ground source heat pumps and

have found them to be the most efficient and

cost effective heating solution on the market.”

Renewable Heat Incentive

The Domestic RHI

For more information:

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Domestic

Pre-application enquiries by ESAS in England & Wales: 0300 123 1234

Or contact Home Energy Scotland: 0808 808 2282

Ofgem deliver scheme – guidance and online application form

www.ofgem.gov.uk/domestic-rhi

Non-domestic

Ofgem deliver scheme

Guidance on www.ofgem.gov.uk

RHI enquiry line: 0845 200 2122

Email: rhi.enquiry@ofgem.gov.uk

Thank You

Questions?

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