1 / 23

The Renewable Heat Incentive explained

The Renewable Heat Incentive explained. Paul Bourgeois Director Zero Carbon Britain Ltd. Agenda. Introduction Context and History Technology RHI rates and accessing them Progress to date What are the options? Designing heat technologies Case Studies. Context and History. Legislation

jon
Download Presentation

The Renewable Heat Incentive explained

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TheRenewable Heat Incentiveexplained Paul Bourgeois Director Zero Carbon Britain Ltd.

  2. Agenda Introduction Context and History Technology RHI rates and accessing them Progress to date What are the options? Designing heat technologies Case Studies

  3. Context and History Legislation Government Strategy Renewable Heat Incentive history

  4. Energy Act 2008 • Royal Assent on 28th November 2008 • Implemented the legislative aspects of the Energy White Paper 2007 • Secretary of State to establish a financial support programme • Carbon Capture and Storage (CCS) • Feed in Tariffs • Smart metering...

  5. UK Renewable Energy Strategy • July 2009 • 20% reduction on greenhouse gas emissions • 20% energy from renewable sources • 12% from renewable heat • All by 2020 • 60% by 2050

  6. Main support initiatives Renewables Obligation (RO) Feed in Tariff (FiT) Renewable Heat Incentive (RHI) Increase bio-fuels to 5% by 2013/4 Green Deal

  7. Why are heat incentives needed? • A policy mechanism to accelerate growth • Long term generation contracts • 20 years for most technologies • Price certainty over a fixed time • Retail Price Index (RPI) • Payment levels are performance based

  8. The RHI, as originally planned • Announced on 10th March 2011 • World first • First phase until 31st March 2012 • Non-domestic – metered heat • Domestic – limited to £12m via voucher scheme • Second phase from 1st April 2012 • Non-domestic – additional technologies • Domestic – similar to Feed in Tariff

  9. What actually happened • Non-domestic scheme • Phase 1 • Launched 28th November 2011 • Phase 2 • Consultation to extend to new technologies • Air quality and biomass sustainability issues • July 2012

  10. Applicable technologies Heat generation and Bio-methane production Biomass boilers (including CHP biomass) Solar thermal Ground source heat pumps Water source heat pumps Deep geo-thermal Energy from municipal waste On-site biogas Injection of bio-methane into grid

  11. Non-domestic RHI Tariff Rates

  12. Tier 1 and 2 Tier 1 rate purpose is to compensate heat users for the installation and fuel costs. Tier 2 tariff is slightly lower than the fuel cost to incentivise not wasting heat. Tier 1 applies annually up to the Tier Break (installed capacity x 1,314 peak load hours, i.e. kWth x 1,314) Tier 2 applies above the Tier Break.

  13. What happened - Domestic • Renewable Heat Premium Payments • Voucher scheme operated by the Energy Saving Trust from 21st July 2011 to 31st March 2012 • 26th March 2012 • Extended in light on lengthy consultation • Not coinciding with Green Deal – October 2012 • Summer 2013

  14. Renewable Heat Premium Payment - RHPP For domestic properties - £12m (Phase 1) £3m through Social Housing projects Solar thermal (any property) - £300 Air Source Heat Pumps - £850 Ground Source Heat Pumps - £1,250 Biomass - £950 Phase 2 – additional £10m

  15. Cost Control Measures - Timeline RHI from general taxation September 2012 – Extending to other technologies and Deployment of household Renewable Heat Incentive End of financial year – Cost Control Regime policy to be implemented Summer 2013 – Domestic RHI to be introduced

  16. Access to payments • Microgeneration Certification Scheme (MCS) • Up to 45kWth for heat generation • MCS Products and Installation Companies • Standards and levels competency • Building Regulations Compliance • Certification through one of 16 bodies • REAL Assurance Scheme • Over 45kWth direct to Ofgem

  17. A Mark of Quality Certification ü Body Certification ü Body

  18. RHPP Phase 1 Statistics • August 2011 to March 2012 • £2.95m (less than 25% take up)

  19. RHI Non-domestic Statistics • 28th November 2011 to 31st March 2012 • 20 installations accredited • 5.25MW total capacity • 80% Biomass • 15% Ground source heat pump • 5% Water source heat pump • 376 applications (5.3% successful) • Incomplete, insufficient detail, inconsistencies

  20. The big question...Uncertainty or opportunity?

  21. Opportunities • On site generation • High heat demand • Short payback periods • Minimal transmission losses • Cross fertilising initiatives • Stimulated by Green Deal • New build agenda • CfSH, Passivhaus, home economics

  22. Burning questions? orQ&A at the end

  23. Zero Carbon Britain • Consultancy and Advisory Service • Carbon reduction project management • Supply chain development • Passivhaus and Code for Sustainable Homes • Certificated and bespoke training courses • Sustainable Construction options appraisal paulb@zerocarbonbritain.co.uk

More Related