Renewable heat incentive scheme 2011

thills

It is proposed, that any home "generating" heat from renewable sources will get a rebate for every kW of heat generated. 6p per kW has been suggested. With a COP of >3 it might be free heat in effect. Not sure, details just discussion documents I think.

Cardew

I think you are tlaking about the Feed In Tariffs(FITs) that are proposed to start April this year?

Essentially solar and wind systems will have a subsidy paid for each kWh generated; for solar it will be 36.5p for each kWh.

The system has to be fitted by an approved installer and will cost several thousand pounds.

Plenty of detail on this in the 'Green' forum.

albyota

the renewable heat incentive is still being discussed as thills suggests, this is for heat generated on site and will include ASHP's and biofuel / CHP boilers, this is seperate to the FIT for Solar PV and wind....

thills

Yes, the incentive, proposed in April 2012 is for heat generation, not electricity. Who knows if it will happen or what it might be; but the discussion documents are looking at the real need to incentivise people to invest & grants cost money up front. There is more to it though, it's about security of energy long term, meeting CO2 targets & the UK import/export balance. Power stations cost bug money, best way is to not have to build them. T

thills

Heat pumps are good, genuine free heat compared to other electric heating, but most people (me included) will go for the lowest cost option open to us for keeping warm. GCH is usually that option - if you have gas. If incentives increase the use of heat pumps, the initial cost will fall & if the cost of heat pumps was similar to GCH & we know the energy running costs are similar then you will have a more level playing field.

Hermann

Cardew wrote: »

I think you are tlaking about the Feed In Tariffs(FITs) that are proposed to start April this year?

Essentially solar and wind systems will have a subsidy paid for each kWh generated; for solar it will be 36.5p for each kWh.

The system has to be fitted by an approved installer and will cost several thousand pounds.

Plenty of detail on this in the 'Green' forum.

I believe the OP is talking about RHI not FITs.

http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/policy/renewable_heat/incentive/incentive.aspx

They are a lot further off than FITs and should offer a similar payment for technologies not covered by FITs. FITs being for electricity production RHI being for other technologies.

From DECC .....

Common examples of renewable heat technologies include: air- and ground-source heat pumps, biomass fuelled stoves and boilers, solar-thermal water heaters and combined heat and power (CHP) plants which use renewable fuels.

Could turn Heatpumps into quite a moneymaker!

thills

Thanks Hermann... sounds like good news.
QUOTE:
Renewable Heat Incentive

Posted by Water & Energy Field Services on 08/0909 at 12:39 PM
April 2011 will be a major milestone for the UK renewable heat sector. From this date, the government’s ‘Renewable Heat Incentive’ (RHI) will commence. We firmly believe the market for heat pump installation will be transformed by this initiative.
In place of the existing modest grants available under the Low Carbon Building Scheme, producers of renewable heat from heat pumps, biomass and solar panels will receive a tariff payment for every unit of heat energy they produce.

Water and Energy Field Services will be providing briefing notes as more details of the scheme are revealed. However, it is already clear that users of domestic and commercial heat pumps will receive sufficient tariff payment to at least pay for the electricity used to operate their heat pump. In other words, the heat you produce will be free and capital payback will be at least halved. The payments are thought to be guaranteed for 20 years. This will provide a return on investment in renewable technology of up to 8%.

How is this to be paid for? The answer is that everyone’s bills for oil, gas or electrical heating will increase. The money raised will be used to fund the RHI scheme. The objective is for the RHI to be a major driver to accelerate the move from ‘dirty’ fossil fuels to renewable heating systems.

All systems installed after 16th July 2009 will qualify for RHI payment from April 2011, and systems installed between now and April 2011 will ALSO get the one-off grant payment. What possible reason can anyone now have for not ‘going renewable’?!

Hermann

I'd be a little cautious as the scheme is still in the consultation phase, the details could change. I can't see how any installer can guarantee payments of RHI at this stage.

Even the FITs scheme which is due to start in april 2010 hasn't been finalised.

Of course not all equipment will qualify and I expect there will be an 'accredited' list and 'accredited' installers and if your installation isn't accredited then no RHI for you!

So I'd see it as a bit of a gamble at the moment as far as RHIs are concerned. Of course if a heat pump makes sense for you any way then it would simply be bonus to get the RHI.

thills

http://www.r-e-a.net/document-library/press-releases/100201RHIPressBriefing.pdf

This document quotes rates...

Hermann

thills wrote: »

http://www.r-e-a.net/document-library/press-releases/100201RHIPressBriefing.pdf

This document quotes rates...

Very interesting document ... but its important to remember this is just the start of the consultations. The scheme and the rates may change before implementation.

There is a general election between now and the implementation so things could change significantly!

thills

Yes & thanks. For my project heat pump was the only way to go & not counting any chickens yet.