Renewable energy, as part of our wider switch to a low carbon economy, plays a vital part in our work to tackle climate change and maintain secure energy supplies.
The Renewable Energy Strategy (RES), published on 15 July 2009, sets out the path towards achieving our target of 15% of our overall energy consumption to come from renewable sources by 2020.
In order to enable individuals, communities and others who are not professionals in the energy business to play their part in bringing forward renewable energy, the Government committed to introducing clean energy cash-back for renewable electricity and heat. We will deliver clean energy cash-back for renewable heat through the Renewable Heat Incentive (RHI).
The consultation document sets out the Government’s proposals on the design and operation of the Renewable Heat Incentive, with the aim of providing financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewable technologies and sources.
Key aspects of the RHI:
The scheme should support a range of technologies, including air, water and ground-source heat pumps (and other geothermal energy), solar thermal, biomass boilers, renewable combined heat and power, use of biogas and bioliquids and the injection of biomethane into the natural gas grid.
RHI payments to be claimed by, and paid to, the owner of the equipment.
In small and medium-sized installations, both installers and equipment to be certified under the Microgeneration Certification Scheme (MCS) or equivalent standard, helping to ensure quality assurance and consumer protection.
Payments will be paid over a number of years; annually for installations below 45 kW and quarterly for those above this level; and always subject to conditions such as continuing to operate and maintain the equipment.
Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems at all scales, with additional compensation for certain technologies for an element of the non-financial cost (e.g. the inconvenience of digging up a garden to install a ground-source heat pump). Tariff levels are proposed to provide a rate of return of 12% on the additional capital cost of renewables, with a lower rate of return of 6% given to solar thermal.
Payments to be calculated on the annual amount of heat output, expressed in kilowatt hours (kWh). At the small and medium scale, the amount of heat generated by the equipment is proposed to be estimated (or “deemed”) when installed in most cases. This will allow the beneficiary of the incentive to receive a set amount based on the deemed output, to encourage low energy consumption and discourage wasting heat.
For large installations and process-heating, heat output to be metered, and the total annual support calculated from the actual energy generated, multiplied by the tariff level.
The RHI will remain open to new projects until at least 2020. Its design and tariff levels will be reviewed from time to time for new projects, so as to adapt to changes in technology costs and other circumstances.
As announced in the RES, installations complete after 15 July 2009 are eligible.
Ofgem will administer the RHI, making incentive payments to recipients and taking responsibility for auditing and enforcing the scheme. Ofgem are to devise a simple process for accrediting smaller installations. This is to ensure that standards are met and payments can be made.
The Energy Act 2008 provides the statutory powers for a renewable heat incentive scheme to be introduced across England, Wales and Scotland.
The detailed legal framework will be set out in secondary legislation.
Reference: DECC Consultation on Renewable Heat Incentive and the proposed RHI financial support scheme. February 2010.
Many UK benefits of a strong RHI
Renewable heat means greater energy security for the UK at a time when a business-as-usual scenario will leave the UK dependent on imports for 80% of its natural gas requirement by 2020. The UK’s entire Renewable Energy Strategy, covering heat, electricity and transport is estimated to reduce fossil gas imports by 20-30% by 2020. Renewable heat will play a major role in this reduction. The technologies involved are proven and available, and in most cases have been used for many years. The great diversity of renewable heat technologies means that renewable heat can work in almost any situation, making it an attractive option for the 2 million homes off the gas grid, where heating options are more limited and more expensive.
Renewable heat avoids emissions associated with the generation of heat energy from fossil fuels. Organic waste streams offer the greatest environmental benefit of all renewables by transforming problematic wastes that can give off methane if left untreated, into energy1 , including heat.
The increasing demand for sustainable wood fuel will also provide an incentive for active investment and management of UK woodlands, allowing for greater biodiversity.
Ambient technologies like solar thermal are already popular and make up the great majority of micro renewable installations in the UK today. The RHI will make these technologies more affordable, bringing down costs over time.
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care."
Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
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