RHI is back on track
The Renewable Heat Incentive for commercial buildings will now launch at the end of November.
The scheme was originally supposed to start on October 1, but was held up at the last minute when the European Commission objected to the very high tariff the UK had set for large scale biomass installations.
That tariff has now been cut by 60 per cent and brought into line with the payments for other technologies, including solar thermal, heat pumps and anaerobic digestion.
"We have now updated the RHI regulations to reflect the required change to large-scale biomass tariff by the European Commission," said a Department for Energy and Climate Change spokesperson. "The large scale biomass tariff has been revised from 2.7 pence per kilowatt hour (KWh) to one penny."
This has allowed DECC to put the regulations forward to Parliament for approval with the aim that they will come into effect at the end of November.
Reward
The Government has set a budget of £860 million for the non-domestic RHI - the domestic scheme comes into force next Autumn. The payments will reward businesses who install heating technologies and fuel uses such as solid and gaseous biomass, solar thermal, ground and water source heat-pumps, on-site biogas, deep geothermal, energy from waste and injection of biomethane into the grid.
Up to 123,000 industrial, commercial and public sector renewable heat installations could be up and running within the next decade, because of the scheme, according to the Government.
Buildings will have meters installed to measure the amount of heat generated, and the owner will be paid for the amount of usable heat generated. Solar thermal projects under 200 kilowatt hours (kWth) in size will receive the highest tariff at 8.5 pence per kWth.
Visit the HVCA Sustainability department's guide to technology choices here.
Commercial RHI tariffs
Solar thermal water heating 8.5p/kWh;
Small biomass schemes 7.6p or 1.9p - depending on type;
Biomethane 6.5p;
Small ground source heat pumps 4.3p, and large schemes 3p.
Combined Heat and Power (CHP) 4.7p or 1.9p;
Large biomass 1p.
Domestic RHI
Due to start Autumn 2012
One-off premium payments available now for 25,000 installations.
Solar thermal £300;
Air source heat pumps £850;
Biomass boilers £950;
Ground source heat pumps £1,250.
