Domestic scheme consultation

In September 2012 the government consulted on proposals for a scheme for domestic premises to start in 2013

The following details give our first rough overview. For a fuller assessment, come back in a few days time, or see the government's web-page on this consultation.

Consultation documents

The consultation documents included: The consultation, which closes on 7th December 2012, and a regulatory impact assessment.

Main proposals

Eligible technologies

Air source heat pumps, biomass boilers, ground source heat pumps and solar thermal systems will be eligible.

Several renewable heat technologies are excluded.

Eligible recipients and installations

Any consumer who replaces their current heating, or who has installed any eligible technology since the 15th July 2009, will be eligible for the RHI. Recipients of RHPP payments will be eligible.

Installations must be MCS certified and meet all the required standards. Consumers must also have installed measures identified with a green tick in their Green Deal assessment.

Second homes would be excluded from the scheme. Private landlords would benefit provided they own the installation. Specific tariffs are being considered for new build and for social landlords.

Tarif period and levels

Tariffs would be paid over a 7 year period but intended over this time to compensate for 20 years worth of heat.

Payments will be made on the basis of 'deemed' heat output with calculations made by a qualified professional.

Tariffs are designed to compensate for the difference between a renewable heating system and a fossil fuel one and also taking into account the difference in operating costs based on an assumed lifetime.

However the maximum tariff will be 17.3p per kWh, so solar thermal and some ground source heat pumps would get less than required to meet the requirement above.

Tariff levels will not be set until the government has considered more evidence, but are expected to be in the following ranges:

Proposed tariff level (range)

	Tariff (p/kWh)
Air-source heat pump	6.9 - 11.5
Biomass boiler	5.1 - 8.7
Ground-source heat pump	12.5 - 17.3
Solar heating	17.3

The government is seeking views as to whether RHI payments will be quarterly or annually, and in advance or arrears.

Payments would be subject to an annual self declaration by the consumer, supported by spot checks or similar measures.

'Budget management'

There will be stringent measures to ensure that the RHI budget (which applies to both domestic and non-domestic installations) is not overspent.

This will probably involve a 'degression' mechanism, similar to that adopted for the Feed-in Tariffs.