FAQs
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.
How are RHI installations treated by the Sustainable Business and Resource efficiency Scheme?
They are treated exactly the same as equivalent renewable installations without the benefit of the Incentive
Chapter 6 of the government’s RHI announcement says
Sustainable Business and Resource efficiency – a voluntary scheme for businesses to report their greenhouse gas emissions
It provides a benchmark of a business’s own resource efficiency which can enhance its reputation and brand value, and for companies falling under the Companies Act 2006, such environmental reporting is a requirement. Companies replacing fossil fuels with renewable energy such as that produced under the RHI will have lower GHG emissions.
How are RHI installations treated by the Zero Carbon Buildings initiative?
They are treated exactly the same as equivalent renewable installations without the benefit of the Incentive
Chapter 6 of the government’s RHI announcement says
Zero carbon new non-domestic buildings
The Government ambition is that all new non-domestic buildings be zero carbon from 2019, with the public sector leading the way from 2018. Progress towards this is driven by upgrading Part L of the Building Regulations, and the responses to the consultation on these proposals were published in December 2010. We will consider the impact on the RHI as these proposals develop.
How are RHI installations treated under the CRC?
At present RHI installations can be counted as zero-rated under the CRC. This is therefore better treatment than that for FITs and RO installations.
Chapter 6 of the government’s RHI announcement says
CRC Energy Efficiency Scheme
The CRC is designed to increase energy efficiency in large public and private sector organisations by driving behaviour and infrastructure change to achieve carbon reductions. Where renewable electricity receives financial support (under the RO or FITs), such electricity does not count towards compliance with the CRC obligations. This is to avoid detracting from the CRC’s primary purpose of increasing energy efficiency.
At present, renewable heat, however, does count as “zero rated” (i.e. can be counted as reducing carbon consumption in compliance with the CRC). The Government may review this position for the future.
Can installations claim both the RHI and the FITs?
Yes, (if they are not registered for the RO) they can get the RHI for their heat output and FITs for their electricity.
Chapter 6 of the government’s RHI announcement says under
Interaction with the Renewables Obligation and Feed-In Tariffs
The Feed-In Tariffs (FITs) provide support for renewable electricity installations up to 5 MW. They do not provide support for renewable heat, and the RHI will not contain any limitations on receiving RHI for renewable heat where (CHP) installations are receiving FITs for renewable electricity. This may be the case with biogas combustion CHP installations. However, any heat used for electricity generation will not be eligible for RHI support.
Can installations switch from the RO to the RHI?
No, not at present.
Chapter 6 of the government’s RHI announcement says
Interaction with the Renewables Obligation and Feed-In Tariffs
At the start of the RHI, installations will also not be able to switch from the RO uplift to the RHI, i.e. if installations are receiving or at any point have been receiving the RO uplift for heat from good quality CHP, they will not be eligible for RHI support.
We will, however, consider whether at a later stage we will allow CHP installations completed after 15th July 2009 which are or have been claiming the RO uplift to switch from the RO to the RHI. We intend to consider this issue on the same timescale as outlined above for the RO Banding Review and the analysis on possible RHI tariffs specifically for CHP heat. Heat from CHP installations that are not and have not been receiving the RO uplift will be eligible for RHI (subject to other eligibility criteria).
Can installations claim both RHI and the RO?
No. The only part of the Renewables Obligation (RO) applicable to heat systems is the CHP uplift, and systems which claim this cannot claim the RHI nor switch to the RHI.
Chapter 6 of the government’s RHI announcement says under
Interaction with the Renewables Obligation and Feed-In Tariffs
Installations will not be able to claim both RO CHP uplift and RHI support.
Will specific tariffs for CHP be considered in the future?
Yes, in conjunction with the Renewable Obligation, which has its own tariffs for combined heat and power (CHP).
Chapter 6 of the government’s RHI announcement says
Interaction with the Renewables Obligation and Feed-In Tariffs
For combined heat and power (CHP) installations, the Renewables Obligation (RO) currently provides support for both renewable electricity and heat. We have been considering whether we should phase out heat support under the RO and support it under the RHI instead, with effect from the next review of RO support levels (bands) in 2013.
We intend to consider whether we should provide different, specific RHI tariffs for renewable heat from CHP. However, any decision on tailored RHI support for renewable heat from CHP cannot be taken in isolation from decisions on the RO and the CHP uplift in the RO, and will therefore be taken along the same timeline as that set out above for the RO Banding Review.
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.
What classifies as ‘public funding’ for considering grants and the RHI?
Chapter 6 of the government’s RHI announcement says
Public funding means:
- any public funding (other than RHI) as grants or benefit provided, for example under central or devolved government schemes or by public authorities at regional or local level, or under European schemes; and where;
- such public funding contributes to the direct costs of the renewable heat installation or its operation.
Is this a Renewable Heat Obligation? Or related to the other Renewables Obligations?
No. The Government did consider a Renewable Heat Obligation but decided to implement the RHI instead. The Renewables Obligation (RO) and Renewable Transport Fuels Obligation (RTFO) are regulations which require energy suppliers (the companies you buy your electricity or your fuel from) to ensure that a proportion of the energy they sell comes from renewable sources. The RHI is intended for people and companies who install renewables mainly for their own use.
Can the Tariffs be applied for if the company is taking part in the Carbon Reduction Commitment?
The government intends to treat energy which earns tariffs the same way as ROC-earning generation (i.e. it would not qualify as zero emissions but would have to be assigned emissions at the grid average).
The only way of getting full renewable credit under the CRC, therefore, is not to register for Feed-In Tariffs, the Renewable Heat Incentive or the Renewables Obligation.
We think this is inappropriate and are making representations accordingly.