Jasveer Matharu, who has recently started an MSc in Consumer Psychology, provided a short summary of the proposal to raise the tariffs under the Renewable Heat Incentive. This is an important financial measure that could encourage other EU countries to do the same.
UK Government’s proposal to raise the Renewable Heat Incentive Tariffs
The UK’s Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat and was launched in 2011 focusing on the non-domestic sector, for example schools, hospitals, small businesses as well as district heating schemes.
The Department of Energy and Climate Change is proposing to more than double the incentives available for large scale installations. Under the RHI financial over 1,300 installations have been carried out since it was made available to those who use renewable energy to heat their buildings. Technologies that qualify include ground source heat pumps, biomass boilers and solar thermal panels.
By increasing the generation of heat from renewable energy sources, the RHI aims to reduce by 80% the UK’s carbon emission by the proposed deadline of 2050. Moreover by providing a long term financial incentive, the RHI is also determined to increase the proportion of heat generated through renewable sources.
Chris Davidson, Director of Development at GI Energy praised Energy and Climate Change Minister Greg Barker, for proposing these changes and stated that the RHI proves the Change Minister is indeed serious about reducing the UK’s carbon footprint.
In the recent news article, GI Energy Optimistic that RHI tariff review will kick start renewable energy market, he openly stated: “The minister and his team clearly understands the huge potential of Ground Source Heat Pump systems for heating and cooling buildings without running up massive bills or damaging our environment”. “This is a fantastic boost for the industry and I am sure that it will help to grow the market”.
Current tariffs for Ground Source Heat Pumps are 3.5 pence for large installations of 100kW or more, and 4.8 pence for smaller ones, which raised concerns that they were not high enough to boost uptake of the technology.
How to apply
For those who wish to apply, it will be important to keep in mind that all heating installations can be different and thus should be prepared for a certain degree of complexity, technical questions and be able to provide evidence.
Ofgem offers advice on how to apply for the RHI scheme.
The application process encompasses 4 main steps:
1) Gather information and documents required
2) Create an account on the RHI Register
3) Complete the application form
4) Upload documents as evidence
For more information on the RHI, Ofgem provide an extensive and very useful User guide for commercial, industrial and public sector heat producers using renewable heat technology in non-domestic and multiple domestic properties.
Final details of the Incentive will be announced this summer and the schemes will be open for payment from spring 2014.
Energy in Demand - Sustainable Energy - Rod Janssen 