FAQs
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) is issued by a qualified assessor to show how energy efficient a building is. It shows the result with a rating between A and G, where A is the most efficient.
Further details are available here.
What is the REAL Code?
It is a code of conduct developed and monitored by Renewable Energy Assurance Limited, setting out good practice, which suppliers should follow when selling renewable energy systems.
Suppliers registered under the Microgeneration Certification Scheme must follow the REAL Code (or an equivalent). Because the MCS is a pre-requisite for systems up to 50kWe, or 45kWth under the Renewable Heat Incentive, suppliers of such systems should be registered under the REAL Code.
Can I get the Premium Payment and the RHI?
Yes. The Renewable Heat Premium Payment (RHPP) does not count as the type of grant which makes you ineligible under the RHI.
The governments FAQs on the RHI say:
For those installations who receive support through the interim measures, support will still be available to them through the RHI once introduced.
Does it matter where the heat is used?
Yes; to be eligible under the RHI, the heat has to be used in a building.
The draft guidelines by the administrator say:
In order to gain accreditation for an installation, an applicant will have to demonstrate to us that an installation meets the RHI eligibility criteria including that:
- the installation is of an eligible renewable heat technology type and size
- the installation was completed and first commissioned on or after 15 July 2009, and
- that the heat is used for ‘eligible purposes‘: heating space, heating water or for carrying out a process where the heat is used in a building.
Can I qualify for the RHI if I’ve received a grant for the system?
Not if the grant qualifies as ‘public funding‘, unless it was received before the RHI came into force and you are able to pay it back.
Chapter 6 of the government’s RHI announcement says
Interaction of the non-domestic RHI with grants
Our decision is based on the principle of no double public funding, but we will make provision for installations that had received public funding during the transition period. (see here)
RHI support will only be available if the installation in question has not received (and will not receive) any other public funding, or, where it has received public funding up to the point at which the RHI regulations came in to force, it has paid this back. If the project receives other public funding after that date, it will not be eligible for RHI support and cannot become eligible by paying it back.
If I get a Renewable Heat Premium Payment will I automatically qualify for the RHI?
Not necessarily!! It is possible that the qualification criteria for the Premium and the RHI may not always coincide.
The government says
Householders who have succeeded in securing the RHI Premium Payment do not automatically qualify for the RHI domestic tariff payment and would need to apply separately for this.
Why is internal process heat not eligible for the RHI?
Because the government suggests it has already received support under the scheme:
Chapter 3 of the government’s RHI announcement says
Process heat
The RHI will only support a unit of heat once. Process internal heat that is part of the efficient operation of the plant will be excluded from the RHI and will not receive support. For example, condensate returns within a system and heat from the biogas boiler/engine used in the operation of an anaerobic digester will not be eligible for the RHI.
Why is heat for electricity production ineligible for the RHI?
Because renewable electricity production is covered by the Feed-In Tariffs.
Chapter 3 of the government’s RHI announcement says
Electricity generation
Heat which is used for the generation of electricity will not be eligible for the RHI, as this is a heat specific scheme not intended to support electricity generation. From the point at which the heat is metered for the purpose of calculating its RHI support it must not be used to generate electricity. This does not preclude heat capture in a CHP plant, for example, where the heat has been used to generate electricity but will then be used for other purposes. Financial support for renewable electricity generation can be claimed under the Feed-in Tariffs scheme or Renewables Obligation
What is the Microgeneration Certification Scheme (MCS)?
It is a nominally industry-led scheme to provide quality assurance for microgeneration products and installations.
Both the Feed-In Tariffs (for systems below 50kW) and the Renewable Heat Incentive (for systems below 45kWth) require that that the major equipment is product-certified and that the installers is accredited.
For MCS-accredited products see here. For accredited installers see here or, because they also have to be accredited under the REAL code, here.
Will there be any reporting, inspections or other policing of the scheme?
Yes the owner will have to submit an annual declaration.
There may also be spot-checks or other inspections as described here.
Chapter 3 of the government’s RHI announcement says
Information and inspection
To ensure Ofgem is able to monitor compliance with the conditions of the RHI, applicants will have to agree up-front that they will provide any relevant information as requested by Ofgem and allow an inspection of the installation to ensure the eligibility criteria are being met. This may be up-front as part of the accreditation process, on a regular basis (e.g. an annual declaration that the participant continues to meet all eligibility criteria) or as part of an ad hoc spot-check.
Will the systems have to be maintained?
Most renewable heat systems need maintenance to keep them operating at their best.
Maintenance is also a requirement for RHI eligibility as described here.
Chapter 3 of the government’s RHI announcement says
Maintenance
We need to ensure that the RHI represents value for money, with a clear return in terms of the amount of renewable energy produced for the money spent. As a condition of receiving support, participants will therefore be required to maintain their equipment to ensure it is working effectively.
Clearly, there is a natural incentive for a participant to keep their equipment maintained without any specific requirement, given it will provide their heating or be crucial to their industrial process, however we still believe there is a risk, albeit low, that some may not. There is a risk that poorly maintained equipment will be less efficient and may have a more harmful impact on the environment. We therefore believe a specific requirement is needed.
Views from stakeholders have been mixed as to what maintenance requirements should be put in place, ranging from those who felt an annual service carried out by a certified installer should be required, to those who warned against a ‘one size fits all’ approach, stressing that maintenance requirements varied considerably. Given the wide range of technologies, we do not think it is practical to specify in legislation a particular level of maintenance or frequency of servicing; what would be appropriate for a biomass boiler may not be for a solar thermal system. We think including such a provision risks being excessively burdensome or possibly misleading. Therefore, at this stage, we do not intend to specify a particular level of maintenance and the requirement will simply be that the equipment is maintained in line with any manufacturer instructions where available.
Participants will be required to keep any evidence of maintenance work carried out, for example, servicing receipts and to provide this evidence, on request, to Ofgem. As part of any annual declaration, a participant will also be required to declare that the equipment is maintained. Where Ofgem is concerned that the equipment is not being maintained, it can then seek further evidence and where satisfied that it is not being maintained, take appropriate action.
Is used, second-hand or converted equipment eligible?
Not at present, but this may change in the future.
Chapter 3 of the government’s RHI announcement says
Conversion
Only new equipment (or where it is completed and first commissioned on or after the 15th July 2009 and the equipment was new at the point of commissioning) will be eligible for the RHI. The tariffs have been calculated on the basis of the installed costs of new equipment. While we recognise that new equipment may not always be the most efficient way of utilising a renewable resource where conversion of existing equipment is an option, we do not have sufficient evidence at present to incorporate it into the scheme. Many conversions at the large scale will be highly bespoke and it is difficult to classify what would be eligible and calculate the appropriate level of incentive. However, we will gather evidence and consider further whether and how conversion could be made eligible for the RHI in future.
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.
What uses of heat are not eligible?
The government has specified the principles of what is eligible. Apart from the two ineligible applications listed below, the regulator Ofgem is left to rule on what is not eligible (and may include notes of this in their guidelines).
Chapter 3 of the government’s RHI announcement lists under
Non-eligible uses of heat
- Heat for electricity generation; and
- The internal process heat in renewable installations
What uses of heat are eligible?
The RHI only applies to useful heat applications and excludes the production of heat for electricity generation.
Chapter 3 of the government’s RHI announcement says
Eligible Uses of Heat
The RHI will only support useful heat. It is not practical to provide an exhaustive list of all the acceptable heat uses which will be eligible. Instead, we can outline the broad principles of what we want to support:
- The utilisation of useful heat;
- The heat must be supplied to meet an economically justifiable heating requirement i.e. a heat load that would otherwise be met by an alternative form of heating e.g. a gas boiler;
- This heat load should be an existing or new heating requirement i.e. not created artificially, purely to claim the RHI; and
- Acceptable heat uses are space, water and process heating where the heat is used in fully enclosed structures.
The only exception to this approach is for biomethane injection, where we will not specify how the biomethane should be used, given it will be injected into the existing gas grid.
Ofgem will determine what constitutes an ineligible heat use in accordance with the RHI regulations.
Will the RHI apply in Northern Ireland?
No, the Renewable Heat Incentive will not apply to Northern Ireland. This is because Northern Ireland falls outside of the remit of the Energy Act 2008.
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 system have to be installed by an MCS certified installer?
Yes, the Microgeneration Certification Scheme (MCS) must be used for smaller systems:
Any system under 50kW (electrical) or 45kW (thermal) must be installed by an MCS-accredited installer to be eligible for the tariffs.
One of the requirements which the installer will have to meet is to ensure that major items of renewable energy equipment are also MCS-certified.
Is there a list of approved manufacturers of equipment?
For systems below 50kW, they will have to be accredited under the MicroGeneration Certification Scheme (see www.microgenerationcertification.org).
Larger systems have to be accredited through the ROO-FIT process, but there are no specific product requirements.