We have been following the development of the Government’s ground-breaking Renewable Heat Incentive (RHI) scheme since it was first announced over a year ago. Last week saw Phase 1 of the RHI open for applications, allowing non-domestic generators to apply for long-term financial support for renewable heat technologies - the first scheme of its kind in the world.
The Department of Energy and Climate Change (DECC) was finally able to allow applications on 28 November 2011 following delays due to the scheme’s compatibility with EU state aid rules. Approval of the scheme by the European Commission was given on the condition that certain tariffs were reduced; for example, large commercial biomass has decreased from 2.7p per kWh to 1.0p per kWh. Please see below a revised table containing the new tariffs available.
Organisations are now able to apply to Ofgem (who administer the scheme on behalf of DECC) for support under the scheme and will receive payments on a quarterly basis for renewable heat generated over 20 years. Interested generators can apply via Ofgem’s website. DECC have stated that the timing for the introduction of Phase 2 of the scheme is under consideration but an announcement is expected early in the New Year.
For more information or to discuss how Shepherd and Wedderburn can assist your business please contact James Saunders or Douglas Campbell.
Tariff name
Eligible technology
Eligible sizes
Tariff rate (pence/
kWh)
Tariff duration (Years)
Support calculation
Small commercial biomass
Solid biomass including solid biomass contained in Municipal Solid Waste and CHP
Less than 200 kWth
Tier 1: 7.9
20
Metering.
Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is: installed capacity x 1,314 peak load hours, i.e.:
kWth x 1,314
Tier 2: 2.0
Medium commercial biomass
200 kWth and above; less than 1000 kWth
Tier 1: 4.9
Tier 2: 2.0
Large commercial biomass
1000 kWth and above
1.0
Metering
Small commercial heat pumps
Ground-source heat pumps; Water-source heat pumps; deep geothermal
Less than 100 kWth
4.5
20
Metering
Large commercial heat pumps
100 kWth and above
3.2
Solar collectors
Solar collectors
Less than 200 kWth
8.5
20
Metering
Biomethane and biogas combustion
Biomethane injection and biogas combustion
Biomethane all scales, biogas combustion less than 200 kWth
6.8
20
Metering