The primary objective for the Northern Ireland Renewable Heat Incentive is to increase the uptake of renewable heat to 10% by 2020. The 10% target for renewable heat equates to 1.6TWh.
Phase one for RHI was launched for non-domestics on 1 November 2012 and RHPP for domestics in May 2012. Consultation for Phase 2 was launched in July 2013 and concluded on 14 October 2013. Findings are due to be published this year.
The aims for Phase 2 of RHI are:
- Expanding the scheme to cover domestics – specifically designed RHI mechanism with different tariffs, payment profiles and eligibility standards.
- Introduction of new tariffs in the non-domestic sector to cover more innovative technologies.
- Consideration of some administrative aspects regarding biomass sustainability, air quality, metering etc.
Domestic RHI proposals
Domestic RHI – Eligibility
Domestic properties only – i.e. A property that is solely, or predominately, used for domestic uses and has not been adapted for commercial reasons. Rates bill a key determinant.
Second homes, holiday homes and rental properties are eligible but require metering. Farmhouses (rating = “House (Agricultural)) will be treated as domestic. Where houses require systems above 45kw different eligibility criteria will be applied.
The main technologies supported will be similar to RHPP
- Air to Water Heat Pumps
- Ground Source and Water Source Heat Pumps
- Solar Thermal (hot water heating only)
Domestic RHI – Proposed Approach
Compressed RHI with upfront support.
- 7 years reflects homeowners desire for a quick return and potential to move property.
- Upfront support will increase accessibility and reduce the barrier of capital costs.
Payments are calculated for the asset life (20 years) and then compressed to pay out the full amount over 7 years.
Tariffs cover additional capex, opex, fuel costs and hassle costs, plus a rate of return of 7.5%.
Domestic RHI Tariffs
|Installed after 1 September and without RHPP assistance||New installations and those supported under the RHPP|
|Tariff for 7 years (pence per kWh)||Up front support||Tariff for 7years (pence per kWh)|
|Air to water heat pumps||8.1||£1700||3.4|
|Ground (or water) source heat pumps||13||£3500||8|
|Air to Air Heat pumps||5.5||£1000||3.5|