Northern Ireland Renewable Heat Incentive

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
  •       Biomass
  •       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
Biomass 7.9 £2500 5.5
Ground (or water) source heat pumps 13 £3500 8
Solar thermal 16.4 £320 13.1
Air to Air Heat pumps 5.5 £1000 3.5
Bioliquids 3.3 £500 2.7

 

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About biopadblog

Developing a local bioenergy market can provide significant opportunities for rural and remote areas, by improving security of energy supply, contributing to a reduction in CO2 emissions and stimulating the local economy by creating jobs and keeping payments for energy within the local community. A new project, BioPAD (Bioenergy Proliferation and Deployment), which targets the Northern Periphery of Europe, aims to ensure that bioenergy becomes more widely used and that awareness of the opportunities it provides are increased. The project will help the development of bioenergy and improve our understanding of the links between supply and demand by looking at supply chains for a variety of bioenergy fuels and different ways of converting these fuels into sustainable energy. Understanding the supply chains and the ways bioenergy moves from fuel source to energy provision will help the establishment of robust and efficient supply services which can match local demand. BioPAD is led by the Western Development Commission www.wdc.ie (Ireland) and is funded under the ERDF Interreg IVB Northern Periphery Programme (NPP) http://www.northernperiphery.eu
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