FAQs
I am considering installing two different renewables. Can I get tariffs for both?
Yes. if you install systems of different technologies you will get the tariffs relevant for each (based on the capacity of each system).
If you install more than one system of the same type, the tariff level will depend on the combined capacity.
What do the ‘tiered’ tariffs mean?
See the description on this page
Chapter 6 of the government’s RHI announcement says
Tariff boundaries
A further, different type of tariff boundary applies within the small and medium-scale biomass tariffs. We are providing “tiered” tariffs in these two segments. This means that biomass installations covered by these tariffs will, each year, receive a higher tier 1 tariff for the initial proportion of their generation, followed by a lower tier 2 tariff for any generation exceeding the amount of heat covered by tier 1. We are adopting this approach to avoid any incentive to generators to generate excess or wasteful heat purely to maximise RHI payments.
The “Tier Break” – i.e. the point at which the tariff switches from tier 1 to tier 2 – is set at the amount of heat corresponding with a 15 per cent load factor of the installation. This means that if an installation generates over the year a quantity of heat equal to running the installation at full capacity for 15 per cent of the year, it receives the tier 1 tariff for this quantity of heat; any additional heat would be compensated by the tier 2 tariff. A 15 per cent load factor corresponds with 1,314 peak load hours (i.e. running the installation at full, or peak capacity for 1,314 hours over the year), and represents our estimate of a reasonable minimum level of usage that we would expect from a renewable heat installation used for space heating.
How have the size bands been set?
Government has said it has aimed to set size ranges to reflect the differential costs of installations at various sizes.
Chapter 6 of the government’s RHI announcement says
Tariff boundaries
For most technologies, a number of tariffs for different sizes of installations have been set, and the boundaries between these tariffs have been set primarily to reflect the economies of scale, but also to align more generally with the typical sizes of installations.
A number of stakeholders have warned that this approach could lead to a ‘cliff-edge’ effect, where the change in tariff levels between tariff bands, if too steep, could act as a disincentive to larger-scale installations or encourage ‘gaming’ (i.e. under-sizing of equipment to avoid falling into the larger-size tariff). In response to these concerns, we have increased the number of tariffs and set the boundaries in a way we believe will help to reduce this risk.
Is combined heat and power (CHP) eligible?
The heat element, where it is produced from eligible renewables, will be supported by the RHI.
Chapter 4 of the government’s RHI announcement says
Renewable combined heat and power (CHP)
Heat produced from renewable combined heat and power plants will be eligible for the RHI, where the fuel or technology used is eligible for support under the scheme. This will apply to biomass (including municipal solid waste), biogas and geothermal installations. CHP will have to meet the eligibility criteria for the equivalent dedicated heat technology (e.g. biomass CHP will have to meet the biomass eligibility criteria). CHP installations will not need to meet the CHPQA standard in order to claim the RHI as we do not propose to give preferential treatment to CHP plants under the scheme. The Government believes the RHI will be a sufficient incentive to optimise generation of heat from CHP.
Where a renewable electricity generating plant converts to heat capture to become a CHP plant, the part of the plant generating heat will be eligible for accreditation, provided it meets all the other eligibility criteria of the scheme.
Is biogas heat eligible for the RHI?
Yes, but only up to 200kWth, and not initially if the biogas is from landfill gas. The definition of biogas is however being widened beyond just anaerobic digestion.
Chapter 4 of the government’s RHI announcement says
Heating from biogas combustion
Generation of heat from the combustion of biogas in boilers or engines will be eligible for the RHI. The RHI will be supporting the direct production of heat for installations up to 200kWth and biomethane injection of all capacities through a single biomethane injection tariff
Where an installation exceeds the threshold because additional capacity has been added the original installation (provided it is less than 200kWth) would still be eligible for support.
What is the definition of biogas?
It is gas produced from biomass sources. The legal definition is about to change to include most applicable conversion processes (at present it only applies for anaerobic digestion).
Chapter 4 of the government’s RHI announcement says under the heading for:
Heating from biogas combustion
Several stakeholders noted that the definition of biogas in section 100 (3) of the Energy Act 2008 would only have allowed for the support of biogas through anaerobic digestion. We will support biogas produced by a range of methods including: anaerobic digestion, also gasification, pyrolysis and from sewage gas. We will amend the primary legislation through the RHI regulations and proposed text for draft regulations to effect this amendment are published alongside this document.
Is landfill gas eligible for the RHI?
Not to start with, but this may change.
Chapter 4 of the government’s RHI announcement says under the heading for:
Heating from biogas combustion
… we will not support landfill gas from the launch of the scheme. Subject to affordability and ongoing work on tariffs, we intend to support landfill gas in future.
Why is biomethane injection eligible under the RHI?
The government has wanted to support biogas injection fo some time and decided that the RHI is the best place to do this, probably because the gas grid is the primary source of heating fuel in the UK.
Chapter 4 of the government’s RHI announcement says
Biomethane injection into the grid
Biomethane for injection into the gas grid will be eligible for the RHI. As in the case of biogas combustion, biomethane produced from landfill gas will not be supported from the launch of the scheme. Subject to affordability, we intend to support landfill gas which is converted to biomethane pending ongoing work on setting appropriate tariff levels.
Once the biomethane is in the gas grid it will receive no further Government incentives for its use.
Are waste heat or CHP from gas or other fossil fuels eligible?
No. Though these do represent less damaging ways of using fossil fuels, they are not renewable so do not qualify.
Chapter 4 of the government’s RHI announcement says
Waste heat from fossil fuel
In most cases heat generated as a by-product of fossil fuelled electricity generation or other processes is wasted. It would be more efficient to capture that heat to meet a heat demand somewhere else. However, the RHI will not support the capture of such heat or the building of infrastructure to transfer it to where the heat is needed. Waste fossil fuel heat is not renewable and therefore does not count towards the UK’s renewable energy targets.
Fossil fuel fired CHP
Some stakeholders have argued that gas-fired CHP should receive support under the scheme as it represents a more efficient use of energy. The Energy Act 2008 only allows the RHI to support renewable energy and therefore we will not support gas-fired CHP under the RHI.
Is co-firing of fossil fuels eligible under the RHI?
No (except in the context of Municipal Solid Waste).
Chapter 4 of the government’s RHI announcement says
Co-firing of biomass with fossil fuel
We will not be supporting the co-firing of biomass with fossil fuels in single boilers under the RHI, apart from where the fossil fuel is part of municipal solid waste (further details about RHI requirements for biomass combustion are explained in the Bioenergy chapter). We recognise its importance to electricity generation but believe there is a smaller need to co-fire for heating and want to encourage a more wholesale switch to renewables.
Are exhaust air heat exchangers eligible?
No they are not, because they are classified as renewable energy under the EU Renewable Energy Directive.
Chapter 4 of the government’s RHI announcement says
Exhaust air heat pumps
Exhaust air heat pumps use air extracted from inside the building, for example from kitchens or computer server rooms, as their air source. They are particularly useful in very well insulated buildings which require mechanical ventilation. However, they are not classified as renewable under the RED as they do not rely solely on outside air and therefore will not be eligible for the RHI.
Why are transpired solar collectors not eligible?
Largely, because they do not qualify as renewable energy under the EU Renewable Energy Directive.
Chapter 4 of the government’s RHI announcement says
Transpired solar thermal panels
A small number of stakeholders have argued that direct air heating or transpired solar panels should be supported under the RHI. These technologies will not be included as they are not counted as a renewable technology under the RED.
Are there any limits to the eligibility of solar thermal systems?
Yes sadly – solar hot water systems are only eligible up to 200kWth.
The tariff levels are also proportionately lower than other heat technologies.
Only water heating panels (flat plate and evacuated tube) are eligible; transpired collectors are not.
Chapter 4 of the government’s RHI announcement says
Solar thermal
Solar thermal panels (liquid filled flat plate or evacuated tube solar collectors) will be eligible for support. Solar thermal installations will be eligible below 200kWth capacity only.
Additional solar thermal capacity added to an existing installation, bringing the total capacity above the tariff threshold of 200kWth, will not be eligible for the RHI. We will consider introducing support for solar installations above this scale from 2012.
Is geothermal energy supported by the scheme?
Yes geothermal heat is supported by the RHI (but geothermal power is not supported by the Feed-In Tariffs).
Chapter 4 of the government’s RHI announcement says
Deep geothermal
Deep geothermal systems, sometimes also referred to as enhanced geothermal or hot dry rocks, will be eligible for the RHI. Deep geothermal will receive the same tariff as ground source heat pumps.
Geothermal systems tend to be relatively large and there are no MCS or equivalent standards so, for the RHI, Ofgem will verify eligibility based on the documentation required from RHI applicants as part of the accreditation process.
When will bioliquids be eligible for the RHI?
Bioliquids have been excluded from the first phase, but may be included in 2012, perhaps using the criterion suggested in the original consultation that they were eligile when replacing oil-fired boilers.
Chapter 4 of the government’s RHI announcement says
Bioliquids
Bioliquids will not be eligible for support from the outset of the RHI. We recognise there are valuable uses of bioliquids in renewable heat generation and combined heat and power, including those developed from wastes such as used cooking oil and those made from advanced technologies.
However, before we can support bioliquids in the RHI, it will be necessary to put in place a co-ordinated approach so that the supply of liquid feedstocks into the heat market does not unduly impact on other important uses, including energy and non-energy uses. An evaluation of the costs and benefits of the use of bioliquids in heat, electricity and transport is underway and this will inform the development of a co-ordinated approach to bioliquids.
Working through these complex issues will take time which means that we will not support bioliquids in 2011 but will consider them further for introduction in 2012.
When will hot air heating be eligible for the RHI?
The government has suggested they should be included in Phase 2 from 2012.
Chapter 4 of the government’s RHI announcement says
Direct air heating
Technologies which deliver renewable heat directly through hot/warm air will not be supported in the RHI from the outset. This means technologies such as ground or water source to air heat pumps; biomass kilns; furnaces; ovens and air heaters will not be able to claim the RHI. We will, however, look at whether and how these technologies could be included in the RHI from 2012.
There are a number of reasons for not including these technologies from the start of the scheme, which are primarily practical. Our methodology is to meter the heat generated and pay the RHI on that basis, however, there are practical difficulties with metering direct air heating, rather than water and steam. Furthermore, there is insufficient evidence of the costs of these technologies on which to base the RHI tariffs. Given they could be installed in significant numbers, we need to gather further evidence about the costs and operation of direct air heating equipment in order that we can set the correct tariff. Finally, we need to ensure we have the right strategy for supporting air to air source heat pumps specifically given that a large number are installed already for cooling (air conditioning) purposes.
When will air-source heat pumps be eligible for the RHI?
The government has suggested they should be included in Phase 2 from 2012.
It has also indicated they will be included in the Renewable Heat Premium Payment.
Chapter 4 of the government’s RHI announcement says
Air source heat pumps
Air source heat pumps will not be supported from the outset, as more work is needed to better understand the costs associated with the technology and, for air to air heat pumps, we have not yet developed a means of measuring direct air heating, as we have for water and steam. Subject to the successful conclusion of the work and affordability, we will look to extend eligibility for air to water source heat pumps from 2012.
What heat pumps will be eligible for the RHI?
Initially ground- and water-source heat pumps will be eligible, provided they have a coefficient of performance (COP) over 2.9.
Air-source heat pumps are not initially eligible, but should be later. So should heat pumps that deliver hot air.
Chapter 4 of the government’s RHI announcement says
Heat pumps (ground, water source)
Ground and water source heat pumps will be eligible for the RHI provided they meet certain eligibility requirements. However, air source heat pumps will not be eligible at the start of the RHI.
Eligible heat pumps will be required to have a coefficient of performance (COP) of 2.9 or above. This is to help ensure that heat pumps provide a good return in terms of renewable output and that ultimately, they represent value for money. Applicants will be required to demonstrate, to Ofgem’s satisfaction, that the heat pump meets a COP of at least 2.9; this will usually be part of the equipment documentation supplied by the manufacturer.
[The 2.9 figure is a proxy for the European standard] The EU standard, given in Annex VII of the RED is based on the total useable heat delivered, the average seasonal performance factor and the efficiency of electrical generation. The Commission has committed to providing guidance on how these factors should be measured and we may review our approach once the Commission issues this guidance.
Is heat from waste eligible for the RHI?
Only if it comes from the biomass element of municipal solid waste (MSW).
Any other energy from waste is not eligible.
Chapter 4 of the government’s RHI announcement says
Energy from waste combustion (the biomass proportion of municipal waste)
Heat from solid biomass contained in municipal waste will be eligible for the RHI and the solid biomass content will not have to be combusted in a separate boiler. Regardless of the RHI, such plants have to comply with waste incineration and environmental permitting legislation. For all installations Ofgem will verify RHI eligibility based on the required documentation provided by RHI applicants as part of the accreditation process, such as schematic diagrams and details about system configuration.
Although it is usually better from an environmental perspective to reuse, recycle or produce biogas from these materials, this is not always possible and combustion can offer a better option than disposal to landfill, which generates harmful greenhouse gas emissions. Due to its renewable biomass proportion, currently around half the heat produced by burning municipal waste is renewable heat.
Are all biomass boilers eligible?
No, they have to be of a type that can burn only biomass. Systems below 45kWth must be MCS-accredited.
Chapter 4 of the government’s RHI announcement says
Biomass boilers
Solid biomass will be eligible for the RHI only where that heat is generated using biomass boilers specifically designed and installed to burn biomass. Biomass boilers with a capacity of up to and including 45kWth will have to be certified under the Microgeneration Certification Scheme (MCS) or equivalent scheme. For biomass boilers larger than 45kWth, Ofgem will verify eligibility based on the required documentation provided by RHI applicants as part of the accreditation process.
If additional capacity is added after more than 12 months, how is it rated?
It is effectively treated as a new system, but in the capacity band applicable to the combined capacity of the new plus existing plant.
Chapter 3 of the government’s RHI announcement shows a table to illustrate this principle and says
Additional capacity is first commissioned more than 12 months after the previous installation
Where additional capacity is completed and first commissioned more than 12 months after the previous installation, the first part of the installation will continue to be treated as before. The additional capacity will be rewarded on the basis of the total capacity of the installation and will receive the current tariff level. Using the above example, the first 600kWth boiler will receive the 600kWth tariff available when it first commissioned. The second 600kWth boiler will receive the 1200kWth tariff available when it is first commissioned. In this case, the tariff lifetime of the additional capacity will start from when the additional capacity is commissioned. Each boiler will have to be metered separately so that the output of each one can be appropriately rewarded.
If additional capacity is added within 12 months, how is it rated?
Effectively it is treated as though the system had been orignally installed at the increased (combined) capacity.
Chapter 3 of the government’s RHI announcement says
Additional capacity installed and first commissioned within 12 months
Where additional capacity is first commissioned within 12 months of the commissioning date of the original installation, it will be treated as a single installation. Therefore, the total capacity of the installation will be counted for the purpose of the tariff. For example, a 600kWth biomass boiler added to another 600kWth biomass boiler within the same 12 month period, will mean that the installation will be treated as a 1200kWth installation. This means it will fall into the tariff band for the higher capacity but at the rate which applied when the first boiler was accredited. The lifetime of the installation will be determined by the date that the first boiler was first accredited. The additional capacity and the original installation will have to be metered separately.
How is capacity determined for multiple systems?
In principle when there are multiple systems of the same type at the same site meeting the same heat load, these will be treated as a single installation for the purposes of establishing the tariff band.
Chapter 3 of the government’s RHI announcement says
Definition of an installation
While the RHI applies to a wide range of sectors, the scheme will need to define an installation in order to establish the relevant capacity of the renewable heating equipment in order determine a number of eligibility criteria and tariff bands.
The RHI tariffs are banded by the type and size of renewable heating equipment; the tariffs are higher for smaller installations. Therefore, where multiple units of the same type of heating equipment are installed, there will be an incentive for the owners to claim those units as smaller individual installations rather than as one larger installation, in order to claim the higher tariff. Clearly defining what constitutes an installation is important for ensuring people do not game the system.
An RHI installation can be comprised of one or multiple units of the same heating technology connected to a common heating system.
Where multiple units of the same technology are installed within a 12 month period, their combined capacity will be considered for the purpose of the level of tariffs they receive. Different renewable technologies on a single site will be treated as separate installations in order to allow for differentiation between tariffs and certain eligibility criteria.
How is the capacity of a heating system ascertained?
In principle it is the manufacturer’s rating for the maximum heat output of the system.
Chapter 3 of the government’s RHI announcement says
Installation capacity
For the purposes of the RHI, the installation capacity will be the total installed peak heat output of the installation. Ofgem, as administrator of the scheme, will require details of installed capacity as part of the accreditation process.
Installation capacity will be simple to establish for standard equipment as it will be part of the information provided by manufacturers. For bespoke equipment it may be more difficult but the output capacity of the installation as commissioned will have to be proven to the satisfaction of Ofgem from technical evidence provided by the applicant as part of the accreditation process. Where the installed peak output capacity is provided with the equipment by the manufacturer, that will be used to rate it for the RHI.
Will replacements for existing renewable installations qualify?
Yes
Chapter 3 of the government’s RHI announcement says
Replacing existing renewables
Renewable heating systems that replace an existing renewable heating system will be eligible for the RHI support. Some stakeholders have claimed that owners of older installations, which are not eligible for the scheme (e.g. completed and first commissioned before 15th July 2009) would replace them, despite being fully functioning, with new installations in order to claim the RHI.
Clearly this would go against the intent of the scheme and would not represent value for money. However, this has been deemed as low risk given the up-front capital that would be required and the disruption caused. Furthermore, making replacement of renewable technologies ineligible would be difficult to enforce and would exclude those with a genuine need to replace old or failing equipment. However, we will keep this situation under review and monitor the types of installations claiming the RHI. If there is evidence that a significant number of new installations are replacing well functioning renewable heating systems, we will take action.
Is heat used for cooling eligible under the RHI?
Yes, except for cooling by heat pumps.
Chapter 3 of the government’s RHI announcement says
Cooling
Heat used for cooling counts towards the renewables targets under the Renewable Energy Directive (RED) and therefore, provided it meets all other eligibility criteria, it will be eligible for RHI support. Many commercial and industrial users of energy consume comparable amounts of energy for heating and for cooling. Heat can be used to provide cooling through absorption chillers; this is quite common practice in commercial and industrial uses. Therefore, cooling delivered in this way will be supported under the RHI.
However, the scheme will not support cooling generated by heat pumps, as this does not count under the RED towards our renewables targets. Only the heat element of generation from heat pumps will be eligible.
Can I use a gas/oil boiler and a renewable heat system?
There is nothing in the proposed legislation which stops systems with fossil fuel backup being eligible under the RHI.
Two notes of caution, however:
- It has yet to be decided how this would be treated by the ‘deeming’ calculation, which decides the eligible output on which the tariffs will be based. In other words, your system should qualify for the designated p/kWh tariff, but you cannot yet be sure how many kWh/year will be ascribed to it, and therefore what the income will be.
- The transitional arrangements for systems installed between July 2009 and April 2011 do require that the system “will be the sole fixed heating installation in the property (not counting any immersion heater that may form part of such installation)”. However, it does allow these systems to alternatively use the ‘final’ criteria (thereby suggesting that those might be different).
Hopefully these details should become clearer when the government publishes its response to the recent consultation in the summer.
Does the Renewable Heat Incentive only apply to heat? What about gas? What about electricity?
The RHI applies both to heat from low carbon sources and to biomethane fed into the gas grid. A similar measure for renewable electricity was introduced in April 2010. This is called the Feed-in Tariffs and you can see more about it on our sister website: www.fitariffs.co.uk.
Are there any other restrictions to the RHI?
The main criteria are the type of renewable energy, and installation date.
Systems will also have to be installed to prescribed quality standards in order to qualify (see our page on other eligibility criteria).
A few types of technology have been excluded.
Are there any size limits to the RHI?
No. Unlike the Feed-in Tariffs, the RHI has no upper or lower limit. It’ll therefore apply from domestic heating systems all the way up to industrial process heat and combined heat and power. There are some exclusions for very small scale applications (like open fireplaces).
Does the RHI apply to all forms of renewable heat?
Pretty much all, see a full list of eligible energy sources.
There are some technologies for which a tariff level hasn’t been proposed yet, but the consultation asks how to deal with them.