With the help of the Department of Energy and Climate Change and The Green Deal, significant financial support has been made available for all GSHPs installed after the 15 July 2009 through their Renewable Heat Incentive (RHI) scheme. For the non-domestic sector it generally provides a subsidy, payable over 20 years.
The Non-Domestic RHI is open to the non-domestic sector including industrial, commercial, public sector and not-for-profit organisations with eligible installations, and to producers of biomethane.
The current tariff for Non-Domestic RHI Ground Source Heat Pumps is 8.7p/kWh. The payments will rise every year according to the retail price index (RPI) which come into effect on April 1st each year.
Domestic RHI (dRHI) was launched by OFGEM on 9th April 2014 and offers residential customers a financial support scheme which will provide long-term financial incentives for installations of renewable technologies which generate heat.
The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat. Switching to heating systems that use naturally replenished energy can help the UK reduce its carbon emissions.
People who join the scheme and stick to OFGEM’s rules, receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces.
Your property must be capable of getting a domestic Energy Performance Certificate (EPC). The EPC is the proof needed to confirm that your property is assessed as a domestic ‘dwelling’. Without one, you won’t be able to apply and can’t join the scheme.
An EPC gives information about a property’s energy use, plus recommendations on how to reduce energy and save money. It’s required every time you buy, sell or rent a property. It’s included as part of a Green Deal Assessment, which is a requirement for most to join the Domestic RHI. Nicholls would be able to provide you with access to the Green Deal Assessor database, so you may arrange for an EPC to be undertaken on your property.
The proposal suggests quarterly payments to be made to homeowners over a 7 year period for each kWh of the expected lifetime of the renewable technology, based on deemed heat usage. Targeting approximately a rate of return of 12% p.a. on the additional capital cost of installing GSHP. RHI payments will be claimed by and paid directly to the owner of the equipment based on a deemed or standard calculation basis for small to medium installations. Large installations are likely to be assessed on an individual case basis. To find out more about this publication from the DECC please click here.
Installers and equipment used must be certified under the Microgeneration Certification Scheme (MCS). Payments will be calculated on the deemed annual heat output, in kilowatt hours, that your GSHP would normally provide. This will allow the homeowner to receive a set amount and should encourage low energy consumption whilst discouraging wasteful over production of heat.
The current tariff for Domestic RHI Ground Source Heat Pumps is 18.8p/kWh. The payments will rise every year according to the retail price index (RPI) which come into effect on April 1st each year.
All of the information included is based on the original consultation document published in February 2010 and is subject to change.
Like to know more? Contact us now and we can explain the RHI and how it might apply to your proposed project.