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 3 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Heat is an issue for the UK • 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 Legally binding targets have resulted in introduction of RHI Full payment guaranteed once in scheme Incentivise roll out of renewable heat systems Prepare for mass rollout in 2020s Build sustainable supply chains Improve performance Reduce costs Reduce barriers to uptake 4 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Which scheme is right for me? Domestic Non-domestic Property must have domestic EPC - single Commercial, industrial, public domestic dwelling. sector and not for profit Eligibility Home owners, social and private Multiple homes (including District landlords and self builders (not new build) Heating) – no exclusion for new build properties Third party owners not yet eligible Payment Payments made over 7 years (to Payments made over 20 years compensate for 20 years of benefits) period Measuring Deemed renewable heat output (metered Eligible heat use is metered on if back up system or second home) actual generation or use usage 5 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Social Landlords in the RHI Domestic RHI Non-domestic RHI RSLs can apply for and receive RHI Single installations supporting multiple payments for property / properties they own domestic properties are eligible Expectation that permission granted from Could include district and community tenants for installation / maintenance etc renewable heating For ALMOs, application must come from the This could be, for example, a central owner of the heating system biomass boiler for an apartment building Same tariff levels apply as for individual Or a network of pipes delivering heat from household applications central location to multiple properties Series of RHPP Social Landlords competitions provided £10m in funding for 4,200 installations in tenants’ homes (2011 – 2014) 6 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI District Heating / Heat Networks Supplies heat from central source Can be cost-effective and viable directly to homes / businesses through alternative to individual installations network of pipes carrying hot water 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) 7 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Tariffs & Eligibility for the Domestic RHI • Tariffs are dependent on the type of technology installed Eligible solar thermal panels Biomass only boilers 12.2p only provide hot water Payments per kWh Biomass pellet stoves with integrated boilers 12.2p Only one space heating system per property Air source heat pumps 7.3p Can apply for solar thermal for hot water AND a space Ground source heat pumps heating system 18.8p Metering for second homes Solar thermal panels - flat plate / evacuated tube only* 19.2p & homes retaining secondary heating options *Solar PV-T eligible for FiTs, but not domestic RHI at present 8 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Quarterly payments in arrears for 7 years • 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 ASHP Biomass GSHP Solar Thermal • Between 10 and • Between 15 and • Between 25 and • Between £60- 35% 40% 40% £130 • If installed and • Dependent on • If installed and • Dependent on operated the price of operated the amount of properly wood fuel used properly hot water used 9 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI What to do before applying • Renewable heating systems work best in well insulated home. Talk to an installer about your options and check advice with Ofgem website What type of system might be right for your property 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 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 Get an updated EPC to verify loft and cavity wall insulation has been installed 10 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI For those intending to apply • 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 15 th 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 11 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Proof for application process • Installer will register system on MCS database and provide certificate. System owner must complete online application process and supply: 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 12 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI New sustainability requirements Spring • Minimum 60% GHG emission saving 2014 relative to EU fossil fuel heat average • Land criteria introduced: UK Timber Spring Standard for woody biomass; RED 2015 for other types 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 13 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Responsibilities of scheme participants • Condition of joining scheme is to abide by the rules, which include: 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 14 Renewable Heat Incentive
Renewable Heat Incentive The Domestic RHI Treatment of ‘Legacy’ applicants • For those who have already installed eligible systems, ‘Legacy’ applications will be staggered: Phase Who can apply New applications Months 1-3 Legacy that was not part – funded by RHPP New applications Legacy that was not part – funded by RHPP Months 3-6 Legacy part funded by RHPP (applied for before 20 th May 2013) New applications Months 6-12 All legacy applications Year 2 onwards New applications only (within one year of commissioning date) 15 Renewable Heat Incentive
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 “ 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 .” 16 Renewable Heat Incentive
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