Tariff level tables 

 

The major benefit of the Renewable Heat Incentive is the generation tariff paid for every kilowatt-hour of energy produced. The level varies depending on the technology and the system size. 

You will not be able to claim the tariff until April 2011. However, any system that was installed after July 15th 2009 will be able to claim the Renewable Heat Incentive when it goes live.  

 

Once you have installed your renewable heat incentive, how will you claim the tariff?  

To register for the Renewable Heat Incentive you will have to provide proof of installation to Ofgem so that you can be formally registered in the scheme. However, do NOT try doing this now as the scheme isn't live yet. 

Once that has been done we are told that Ofgem will begin paying the incentive. This is likely to be in the form of an annual lump sum, probably credited to your bank account but final details won't be revealed until the consultation response is published.  

 

 

 

The Government has published the consultation document for the Renewable Heat Incentive, which is intended to be launched in April 2011. In order for the UK to meet its carbon reduction obligations 12% of UK heat is required to come from renewable sources. The RHI could save up to 60 million tonnes of carbon dioxide by 2020. The RHI is not only intended to reduce carbon dioxide emissions, but also to increase the security of supply of UK energy – in 2008 the UK imported around 25% of its natural gas with a projected increase to 60% by 2020. 

 

The RHI powers in the Energy Act 2008 enable the introduction of a new levy on fossil fuel suppliers who supply fossil fuel to consumers for the purpose of generating heat. 

 

Houses and buildings which currently use conventional fossil fuel for heating, such as gas, heating oil or coal, will be able to claim the RHI if they switch to renewable technologies. The RHI will be available to householders, local authorities and social landlords as well as the public, industrial and commercial sectors. The RHI is applicable to the whole of the UK except for Northern Ireland, which will have its own powers to enable a similar scheme. 

 

Ofgem will play a leading role in administering the scheme and will be making the payments to owners. Domestic heat pumps will require an installer who is certified under the Microgeneration Certification Scheme. Once the system has been installed and commissioned, proof will need to sent to Ofgem so that the applicant can be formerly registered. Ofgem will begin paying the incentive, in the form of an annual lump sum credited to the owners bank account. 

 

Useful heat generation is supported by the RHI i.e. space heating and water heating for the home. All installations after 15th July 2009 will be seen as a “new installation” and will be eligible for the RHI. Systems installed before this date will need to be replaced (or increased in size). Only heat pumps with MCS Product and Installation accreditation will be eligible. 

 

 

In order to prevent wasteful heat production, a basic minimum level of energy efficiency will be assumed for existing homes when the heat load is deemed: 

- At least 125mm loft insulation 

- Cavity wall filled where applicable 

 

Payments will be based on a deemed heat load for domestic installations. This will prevent the costs associated with metering, and also the possibility of “heat dumping”, whereby homeowners purposefully waste heat in order to receive more RHI payment. Each installations tariff entitlement is established by multiplying the proposed tariff per kWh with a deemed heat requirement (number of kWh per year). This is established through an assessment process based on SAP at the beginning of the project.