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Northern	
  Ireland	
  	
  
Renewable	
  Heat	
  Incen2ve	
  
Why	
  do	
  we	
  need	
  an	
  RHI?	
  
o  Primary	
  objec2ve	
  is	
  to	
  increase	
  the	
  uptake	
  of	
  renewable	
  heat	
  to	
  
10%	
  by	
  2020.	
  	
  	
  
o  RHI	
  is	
  necessary	
  because	
  renewable	
  heat	
  technologies	
  	
  are	
  currently	
  
unable	
  to	
  compete	
  with	
  fossil	
  fuel	
  alterna2ves	
  (oGen	
  higher	
  capital	
  
costs	
  and	
  also	
  a	
  lack	
  of	
  understanding/awareness	
  amongst	
  
consumers).	
  
o  Expected	
  that	
  the	
  RHI	
  will	
  have	
  a	
  number	
  of	
  other	
  wider	
  benefits	
  in	
  
terms	
  of	
  fuel	
  security,	
  lower	
  emissions	
  and	
  ‘green	
  jobs’.	
  	
  
.	
  
NI	
  RHI	
  –	
  Phase	
  1	
  
o  Minister	
  Foster	
  launched	
  	
  Phase	
  1	
  of	
  the	
  	
  RHI	
  in	
  November	
  2012	
  
o  	
  Budget	
  of	
  up	
  to	
  £25m	
  to	
  2015.	
  
o  A	
  DETI	
  scheme	
  	
  which	
  provides	
  financial	
  support	
  to	
  renewable	
  heat	
  
generators	
  and	
  producers	
  of	
  biomethane.	
  
o  Applicable	
  to	
  Non	
  domes2c	
  installa2ons	
  
o  Well-­‐established	
  technologies	
  
o  Act	
  as	
  a	
  primer	
  for	
  rest	
  of	
  market	
  
Tariffs	
  
o  The	
  RHI	
  aims	
  to	
  compensate	
  investors	
  for	
  the	
  addi2onal	
  costs	
  
of	
  renewable	
  heat	
  compared	
  to	
  tradi2onal	
  fossil	
  fuel	
  systems.	
  
o  Tariffs	
  take	
  into	
  account	
  all	
  the	
  various	
  types	
  of	
  costs	
  involved	
  
(including	
  capital,	
  financing,	
  barrier,	
  fuel	
  and	
  opera2ng)	
  to	
  
produce	
  a	
  pence	
  per	
  kWh	
  cost	
  figure.	
  	
  
o  A	
  rate	
  of	
  return	
  is	
  included	
  in	
  order	
  to	
  s2mulate	
  interest	
  in	
  a	
  
developing,	
  unknown	
  marketplace	
  and	
  to	
  provide	
  
compensa2on	
  for	
  financing	
  costs.	
  	
  	
  
o  Payments	
  are	
  be	
  made	
  on	
  a	
  quarterly	
  basis	
  
o  Once	
  an	
  installa2on	
  is	
  accredited	
  under	
  the	
  scheme	
  they	
  will	
  
receive	
  a	
  fixed	
  level	
  of	
  support	
  which	
  will	
  be	
  adjusted	
  
annually	
  in	
  line	
  with	
  infla2on.	
  	
  	
  
NI	
  Tariffs	
  
Tariff	
  Name	
  	
   Eligible	
  Technologies	
   Size	
  (kWth)	
  
NI	
  levels	
  	
  
(pence	
  per	
  kWh)	
  
GSHP	
  
Including	
  water	
  source	
  
heat	
  pumps	
  and	
  deep	
  
geothermal	
  
Less	
  than	
  20kWth	
   8.4	
  
20	
  kWth	
  and	
  above	
  up	
  to	
  but	
  not	
  
including	
  100	
  kWth	
  
4.3	
  
100	
  kWth	
  and	
  above	
  	
   1.3	
  
Biomass	
  
Less	
  than	
  20kWth	
   6.2	
  
20	
  kWth	
  and	
  above	
  up	
  to	
  but	
  not	
  
including	
  100	
  kWth	
  
5.9	
  
100	
  kWth	
  and	
  above	
  up	
  to	
  but	
  
not	
  including	
  1000	
  kWth	
  
1.5	
  
Biomethane	
  
Biomethane	
  	
  
injecPon	
  and	
  biogas	
  
combusPon,	
  except	
  from	
  
landfill	
  gas	
  
All	
  scales	
  biomethane,	
  biogas	
  
combusPon	
  	
  
<	
  200	
  
3.0	
  
Solar	
  Thermal	
   <	
  200	
   8.5	
  
Administra2on	
  of	
  RHI	
  
o  The	
  RHI	
  is	
  being	
  administered	
  by	
  Ofgem	
  
o  Ofgem	
  is	
  the	
  Office	
  of	
  Gas	
  and	
  Electricity	
  Markets,	
  regula2ng	
  
the	
  gas	
  and	
  electricity	
  industries	
  in	
  Great	
  Britain.	
  
o  Ofgem	
  manages	
  a	
  range	
  of	
  other	
  programs	
  including	
  the	
  GB	
  
RHI	
  and	
  the	
  NIRO	
  
Guidance	
  documents	
  for	
  RHI	
  
o  Available	
  on	
  NIDirect	
  website	
  
	
   	
   	
   www.nidirect.gov.uk/energywise	
  
o  Volume	
  1	
  –	
  Eligibility	
  and	
  How	
  to	
  Apply	
  
» General	
  informa2on	
  
» Technology	
  specifica2ons	
  
» Heat	
  uses	
  
» Metering	
  requirements	
  
o  Volume	
  2	
  –	
  Ongoing	
  Obliga2ons	
  
» Payments	
  
» Compliance	
  and	
  Enforcement	
  
» Audit	
  
Applying	
  
o Read	
  the	
  Guidance	
  carefully	
  
o 	
  Apply	
  online	
  through	
  the	
  Ofgem	
  RHI	
  register.	
  
o Gather	
  the	
  relevant	
  informa2on	
  for	
  your	
  applica2on	
  
– Technical	
  specifica2ons	
  of	
  meters	
  and	
  boilers	
  
– Schema2cs	
  
– Planning	
  Consents	
  
– Invoices	
  
– Commissioning	
  Documents	
  
– Photograph	
  of	
  the	
  installa2on	
  clearly	
  showing	
  the	
  serial	
  
number	
  of	
  the	
  equipment	
  
Eligibility	
  
• Technologies,	
  as	
  per	
  tariff	
  table.	
  
• Payments	
  made	
  to	
  the	
  owner	
  of	
  the	
  equipment.	
  
• Installa2on	
  must	
  be	
  completed	
  or	
  first	
  commissioned	
  on	
  or	
  aGer	
  1st	
  
September	
  2010.	
  
• New	
  at	
  2me	
  of	
  installa2on.	
  
• Must	
  be	
  ‘useful’	
  hea2ng	
  i.e.	
  for	
  a	
  space,	
  water/liquid	
  and	
  process	
  hea2ng.	
  
• Not	
  compa2ble	
  with	
  other	
  grants,	
  is	
  compa2ble	
  with	
  Carbon	
  Trust	
  interest	
  
free	
  loan.	
  
	
   	
  
• Heat	
  meters	
  required.	
  
Ongoing	
  Requirements	
  	
  
and	
  Payments	
  
Ongoing	
  requirements	
  
o Quarterly	
  submission	
  of	
  meter	
  readings.	
  
o No2fica2on	
  of	
  changes	
  to	
  installa2on	
  or	
  heat	
  use.	
  
o Annual	
  declara2on	
  of	
  compliance.	
  
Payments	
  
o Paid	
  quarterly	
  for	
  20	
  years.	
  
o Tariffs	
  updated	
  on	
  annual	
  basis	
  linked	
  to	
  RPI,	
  otherwise	
  
‘grandfathered’.	
  
o Payments	
  into	
  nominated	
  bank	
  account	
  via	
  BACS	
  transfer.	
  
Phase	
  2	
  of	
  RHI	
  
•  Extension	
  of	
  scheme	
  to	
  domes2c	
  installa2ons	
  
•  Poten2al	
  addi2onal	
  technologies	
  (ASHP,	
  Bioliquids,	
  Large	
  
Solar,	
  Deep	
  Geothermal)	
  
•  Other	
  issues	
  (district	
  hea2ng)	
  
•  Currently	
  under	
  development	
  –	
  will	
  then	
  be	
  subject	
  to	
  public	
  
consulta2on	
  -­‐	
  an2cipated	
  implementa2on	
  	
  -­‐	
  late	
  2013	
  
Renewable	
  Heat	
  Premium	
  Payments	
  –	
  for	
  domes2c	
  
installa2ons	
  
o  Launched	
  24	
  May	
  2012	
  as	
  a	
  forerunner	
  to	
  RHI	
  being	
  extended	
  
to	
  domes2cs.	
  
Technology Level of Support
ASHP £1700
Biomass £2500
GSHP £3500
Solar Thermal £320
o 	
  To	
  date	
  there	
  has	
  been	
  over	
  650	
  applica2ons	
  and	
  DETI	
  has	
  
commijed	
  over	
  £1million	
  of	
  funding	
  
Premium	
  Payments
o  Installers	
  that	
  avail	
  of	
  the	
  Premium	
  Payment	
  Scheme	
  will	
  
remain	
  eligible	
  for	
  any	
  future	
  domes2c	
  RHI	
  (although	
  RHI	
  
payments	
  may	
  be	
  adjusted	
  to	
  take	
  account	
  of	
  RHPP)	
  
o  Technologies	
  can	
  only	
  be	
  installed	
  in	
  primary	
  places	
  of	
  
residence,	
  not	
  second	
  homes	
  or	
  holiday	
  homes,	
  and	
  they	
  must	
  
have	
  basic	
  energy	
  efficiency	
  measures	
  in	
  place.	
  	
  	
  
o  Technologies	
  must	
  be	
  listed	
  under	
  the	
  Microgenera2on	
  
Cer2fica2on	
  Scheme	
  (MCS)	
  or	
  Solar	
  Keymark	
  and	
  be	
  installed	
  
by	
  someone	
  registered	
  through	
  the	
  MCS	
  scheme.	
  	
  	
  
o  Other	
  terms	
  and	
  condi2ons	
  on	
  NIDirect	
  website.	
  
Contacts	
  
Email:	
   ni.rhi@de2ni.gov.uk	
  
Tel:	
   028	
  9052	
  9212	
  
Add:	
   Renewable	
  Heat	
  Branch	
  
	
   Room	
  44,	
  
	
   Netherleigh	
  House	
  
	
   BT4	
  2JP	
  
Web:	
   www.energy.de2ni.gov.uk	
  	
  

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Collaboration incentives-support-for-business-peter-hutchinson

  • 1. Northern  Ireland     Renewable  Heat  Incen2ve  
  • 2. Why  do  we  need  an  RHI?   o  Primary  objec2ve  is  to  increase  the  uptake  of  renewable  heat  to   10%  by  2020.       o  RHI  is  necessary  because  renewable  heat  technologies    are  currently   unable  to  compete  with  fossil  fuel  alterna2ves  (oGen  higher  capital   costs  and  also  a  lack  of  understanding/awareness  amongst   consumers).   o  Expected  that  the  RHI  will  have  a  number  of  other  wider  benefits  in   terms  of  fuel  security,  lower  emissions  and  ‘green  jobs’.     .  
  • 3. NI  RHI  –  Phase  1   o  Minister  Foster  launched    Phase  1  of  the    RHI  in  November  2012   o   Budget  of  up  to  £25m  to  2015.   o  A  DETI  scheme    which  provides  financial  support  to  renewable  heat   generators  and  producers  of  biomethane.   o  Applicable  to  Non  domes2c  installa2ons   o  Well-­‐established  technologies   o  Act  as  a  primer  for  rest  of  market  
  • 4. Tariffs   o  The  RHI  aims  to  compensate  investors  for  the  addi2onal  costs   of  renewable  heat  compared  to  tradi2onal  fossil  fuel  systems.   o  Tariffs  take  into  account  all  the  various  types  of  costs  involved   (including  capital,  financing,  barrier,  fuel  and  opera2ng)  to   produce  a  pence  per  kWh  cost  figure.     o  A  rate  of  return  is  included  in  order  to  s2mulate  interest  in  a   developing,  unknown  marketplace  and  to  provide   compensa2on  for  financing  costs.       o  Payments  are  be  made  on  a  quarterly  basis   o  Once  an  installa2on  is  accredited  under  the  scheme  they  will   receive  a  fixed  level  of  support  which  will  be  adjusted   annually  in  line  with  infla2on.      
  • 5. NI  Tariffs   Tariff  Name     Eligible  Technologies   Size  (kWth)   NI  levels     (pence  per  kWh)   GSHP   Including  water  source   heat  pumps  and  deep   geothermal   Less  than  20kWth   8.4   20  kWth  and  above  up  to  but  not   including  100  kWth   4.3   100  kWth  and  above     1.3   Biomass   Less  than  20kWth   6.2   20  kWth  and  above  up  to  but  not   including  100  kWth   5.9   100  kWth  and  above  up  to  but   not  including  1000  kWth   1.5   Biomethane   Biomethane     injecPon  and  biogas   combusPon,  except  from   landfill  gas   All  scales  biomethane,  biogas   combusPon     <  200   3.0   Solar  Thermal   <  200   8.5  
  • 6. Administra2on  of  RHI   o  The  RHI  is  being  administered  by  Ofgem   o  Ofgem  is  the  Office  of  Gas  and  Electricity  Markets,  regula2ng   the  gas  and  electricity  industries  in  Great  Britain.   o  Ofgem  manages  a  range  of  other  programs  including  the  GB   RHI  and  the  NIRO  
  • 7. Guidance  documents  for  RHI   o  Available  on  NIDirect  website         www.nidirect.gov.uk/energywise   o  Volume  1  –  Eligibility  and  How  to  Apply   » General  informa2on   » Technology  specifica2ons   » Heat  uses   » Metering  requirements   o  Volume  2  –  Ongoing  Obliga2ons   » Payments   » Compliance  and  Enforcement   » Audit  
  • 8. Applying   o Read  the  Guidance  carefully   o   Apply  online  through  the  Ofgem  RHI  register.   o Gather  the  relevant  informa2on  for  your  applica2on   – Technical  specifica2ons  of  meters  and  boilers   – Schema2cs   – Planning  Consents   – Invoices   – Commissioning  Documents   – Photograph  of  the  installa2on  clearly  showing  the  serial   number  of  the  equipment  
  • 9. Eligibility   • Technologies,  as  per  tariff  table.   • Payments  made  to  the  owner  of  the  equipment.   • Installa2on  must  be  completed  or  first  commissioned  on  or  aGer  1st   September  2010.   • New  at  2me  of  installa2on.   • Must  be  ‘useful’  hea2ng  i.e.  for  a  space,  water/liquid  and  process  hea2ng.   • Not  compa2ble  with  other  grants,  is  compa2ble  with  Carbon  Trust  interest   free  loan.       • Heat  meters  required.  
  • 10. Ongoing  Requirements     and  Payments   Ongoing  requirements   o Quarterly  submission  of  meter  readings.   o No2fica2on  of  changes  to  installa2on  or  heat  use.   o Annual  declara2on  of  compliance.   Payments   o Paid  quarterly  for  20  years.   o Tariffs  updated  on  annual  basis  linked  to  RPI,  otherwise   ‘grandfathered’.   o Payments  into  nominated  bank  account  via  BACS  transfer.  
  • 11. Phase  2  of  RHI   •  Extension  of  scheme  to  domes2c  installa2ons   •  Poten2al  addi2onal  technologies  (ASHP,  Bioliquids,  Large   Solar,  Deep  Geothermal)   •  Other  issues  (district  hea2ng)   •  Currently  under  development  –  will  then  be  subject  to  public   consulta2on  -­‐  an2cipated  implementa2on    -­‐  late  2013  
  • 12. Renewable  Heat  Premium  Payments  –  for  domes2c   installa2ons   o  Launched  24  May  2012  as  a  forerunner  to  RHI  being  extended   to  domes2cs.   Technology Level of Support ASHP £1700 Biomass £2500 GSHP £3500 Solar Thermal £320 o   To  date  there  has  been  over  650  applica2ons  and  DETI  has   commijed  over  £1million  of  funding  
  • 13. Premium  Payments o  Installers  that  avail  of  the  Premium  Payment  Scheme  will   remain  eligible  for  any  future  domes2c  RHI  (although  RHI   payments  may  be  adjusted  to  take  account  of  RHPP)   o  Technologies  can  only  be  installed  in  primary  places  of   residence,  not  second  homes  or  holiday  homes,  and  they  must   have  basic  energy  efficiency  measures  in  place.       o  Technologies  must  be  listed  under  the  Microgenera2on   Cer2fica2on  Scheme  (MCS)  or  Solar  Keymark  and  be  installed   by  someone  registered  through  the  MCS  scheme.       o  Other  terms  and  condi2ons  on  NIDirect  website.  
  • 14. Contacts   Email:   ni.rhi@de2ni.gov.uk   Tel:   028  9052  9212   Add:   Renewable  Heat  Branch     Room  44,     Netherleigh  House     BT4  2JP   Web:   www.energy.de2ni.gov.uk