Press Release: Ref: PR1
Subject: ‘RENEWABLE HEAT INCENTIVE’ CONSULTATION PAPER RELEASED BY DEPARTMENT OF ENERGY AND CLIMATE CHANGE.
The much-anticipated consultation paper regarding the RENEWABLE HEAT INCENTIVE (RHI) was published by the Department of Energy and Climate Change (DECC) in February 2010. With the scheme launching in April 2011, this paper is the first real view into how the new scheme will operate.
Under the government’s Renewable Energy Strategy published in 2009 15% of energy must come from renewable sources by 2020. This new directive therefore will boost interest in renewable heat systems and bridge the cost gap when compared with more established fossil fuel systems.
What’s more – the potential benefits of the RHI to rural communities are considerable, especially those not connected to the gas grid and currently using more expensive fuels to heat their homes.
Exactly how will it work? For small installations upto 45kw, typically covering the domestic market, the RHI will be delivered in the form of payments made over a number of years rather than an upfront lump sum. The investment return is proposed at 12% which will encourage wider investment in the new technology.
It is proposed that small installations will receive an annual payment for the first 15 years following completion. These will be calculated as a “deemed” amount relating to the type of property and its anticipated usage. At this point the amount proposed is £0.09p per kWh.
Putting that into figures a typical three bed semi-detached house with cavity wall type construction would have a deemed heat average of 15,000 kWh per year. Based on a biomass heating system the RHI payments would be:
- 15,000 kWh x 9p = £1,350,00 per year for 15 years
(total amount £20,250.00)
In order to gain access to this scheme all renewable products will need to be approved under the Microgeneration Certification Scheme as will the installation companies.
Further good news for any pioneers in this field is that it is proposed that RHI will apply to any system installed as early as July 2009.
To review the consultation paper in full visit: Department of Energy and Climate Change
Evergreen is an independent distributor of wood fuel heating systems with offices in the North and East of England. Their goal is to provide heating systems for our customers that are reliable – technically, financially and environmentally.
Evergreen Ecosystems Ltd
T: 01473 727799