Commodity Watch
The Department of Trade Enterprise and Investment (DETI) has concluded the consultation on Phase 2 of the Renewable Heat Incentive (RHI) and consequently announced that a scheme will be launched to include domestic properties.
RHI to date in Northern Ireland
Non-Domestic RHI – The non-domestic RHI (Renewable Heat Incentive) provides non-domestic properties with ongoing payments for the use of eligible renewable heat technology. This scheme is administered by OFGEM and has been in place since November 2012.
RHPP – Up until now, there was no Domestic RHI, instead domestic customers were able to apply for the RHPP (Renewable Heat Premium Payment). DETI have confirmed that domestic customers within the RHPP do not need to take any action as they will be contacted by DETI officials.
Domestic RHI
The scheme will be administered by DETI and will be open to all domestic properties assuming the property capable of getting a domestic Energy Performance Certificate (EPC). The EPC is the proof DETI need to confirm that a property is assessed as a domestic ‘dwelling’.
Eligible renewable heating system types;
- Biomass boilers
- Air source heat pumps
- Ground source heat pumps
- Solar thermal panels (Flat plate or evacuated tube only)
There are other requirements under the scheme, biomass and heat pump systems must provide space heating (heating rooms in a house) or space and water heating. Solar thermal panels -and should only provide hot water for your home. Applicants will have to heat their homes using a ‘wet’ central heating system such as radiators. In addition, hot water should not include any use which is not domestic.
Upfront payments and ongoing incentives
The Domestic RHI payments have two elements: an upfront payment paid on accreditation and an ongoing incentive payment paid annually. The upfront payment is a set amount based on your technology and the ongoing payment is variable depending on the heat requirements/use in your property. The upfront payments are as follows:
Biomass – £2500
Air Source Heat Pump – £1700
Ground Source Heat Pump – £3500
Solar thermal – £ 320
It should be noted that if have already received support under the RHPP you will only receive the ongoing payment.
The ongoing payments are calculated multiplying a tariff with the heat demand/use in your home.
The current tariff rates in pence per kilo watt hour (p/kWh) are as follows;
Biomass – 5.6 p/kWh
Air Source Heat Pump – 3.5 p/kWh
Ground Source Heat Pump – 8.2 p/kWh
Solar thermal – 13.5p/kWh
These will be reviewed annually according to the RPI.
Requirements;
- You must be the owner of an eligible heating system
- The property must be occupied as a dwelling
- The renewable heating system must be certified under MCS
- No part of the system used to produce heat may have been used before the first commissioning date
- The heating system must have been first commissioned on or after 01/09/2010.
- You must apply within 12 months of the commissioning date of the system.
Metering
Most domestic applicants will not need to install a meter to receive payment although some may have to.
What next?
The Domestic RHI has not yet opened. A further announcement will be made on how to apply for the domestic RHI once the scheme is open for applications.
