Renewable Heat Incentive (RHI) Opportunities for Social Landlords in the RHI

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1 (RHI) Opportunities for Social Landlords in the RHI [Name] [Date]

2 Three good reasons to choose renewable heat 1. Now every building will be able to get an incentive if it goes renewable the RHI is a reality 2. Government has allowed for significant growth year on year in renewable heat demand in domestic and non domestic properties 3. Customers like renewable heat easy to use and adds value 2 Renewable Heat Incentive

3 Customer satisfaction 85% satisfied with new installation 80% found installation process easy 60% believe RHT easier to use Majority think installation has added value to their property Initial data from RHPP evaluation 3 Renewable Heat Incentive

4 Heat is an issue for the UK 47% of UK energy use is in respect of heat and the UK spends around 32bn on heat across our economy Around 1/3 of UK s carbon emissions come from energy used to produce heat Under EU Renewable Energy Directive 2009 we have a binding commitment to increase renewable energy use to 15% by 2020 Legally binding targets have resulted in introduction of RHI Full payment guaranteed once in scheme Incentivise roll out of renewable heat systems Prepare for mass rollout in 2020s Build sustainable supply chains Improve performance Reduce costs Reduce barriers to uptake 4 Renewable Heat Incentive

5 Which scheme is right for me? Eligibility Payment period Domestic Property must have domestic EPC - single domestic dwelling. Home owners, social and private landlords and self builders (not new build) Third party owners not yet eligible Payments made over 7 years (to compensate for 20 years of benefits) Non-domestic Commercial, industrial, public sector and not for profit Multiple homes (including District Heating) no exclusion for new build properties Payments made over 20 years Measuring usage Deemed renewable heat output (metered if back up system or second home) Eligible heat use is metered on actual generation or use 5 Renewable Heat Incentive

6 Social Landlords in the RHI Domestic RHI RSLs can apply for and receive RHI payments for property / properties they own Expectation that permission granted from tenants for installation / maintenance etc For ALMOs, application must come from the owner of the heating system Same tariff levels apply as for individual household applications Non-domestic RHI Single installations supporting multiple domestic properties are eligible Could include district and community renewable heating This could be, for example, a central biomass boiler for an apartment building Or a network of pipes delivering heat from central location to multiple properties Series of RHPP Social Landlords competitions provided 10m in funding for 4,200 installations in tenants homes ( ) 6 Renewable Heat Incentive

7 District Heating / Heat Networks Supplies heat from central source directly to homes / businesses through network of pipes carrying hot water Can be cost-effective and viable alternative to individual installations Reduces cost of energy for consumers DECC offers support to local authorities in developing heat networks through Heat Networks Delivery Unit RHI offers support for district heating through standard technology tariffs Potentially a priority measure for ECO funding (under consultation) 7 Renewable Heat Incentive

8 Payments per kwh Renewable Heat Incentive Tariffs & Eligibility for the Domestic RHI Tariffs are dependent on the type of technology installed 12.2p Biomass only boilers Eligible solar thermal panels only provide hot water 12.2p 7.3p 18.8p Biomass pellet stoves with integrated boilers Air source heat pumps Ground source heat pumps Only one space heating system per property Can apply for solar thermal for hot water AND a space heating system 19.2p Solar thermal panels - flat plate / evacuated tube only* *Solar PV-T eligible for FiTs, but not domestic RHI at present Metering for second homes & homes retaining secondary heating options 8 Renewable Heat Incentive

9 Quarterly payments in arrears for 7 years Available for households on and off the gas grid those without mains gas have the most potential to save on fuel bills and decrease carbon emissions ASHP Biomass GSHP Solar Thermal Between 10 and 35% Between 15 and 40% Between 25 and 40% Between If installed and operated properly Dependent on the price of wood fuel used If installed and operated properly Dependent on the amount of hot water used 9 Renewable Heat Incentive

10 What to do before applying Renewable heating systems work best in well insulated home. Talk to an installer about your options and check advice with Ofgem website What type of system might be right for your property To apply you must have a Green Deal Assessment carried out for the property Only exemptions are for those who build their own homes incorporating renewable heating system You must install loft and cavity wall insulation if recommended in Green Deal Advice Report If it is not possible to do this, evidence must be submitted to Ofgem as part of application Get an updated EPC to verify loft and cavity wall insulation has been installed 10 Renewable Heat Incentive

11 For those intending to apply Only the owner of an eligible heating system can apply. Requirements are: Renewable heating system and the installer must be MCS certified Must have had system installed on or after 15 th July 2009 All of the heating system must be new i.e. not used before commissioning date If system installed on / after launch date, must apply within 12 months of commissioning Public grants (not ECO, Green Deal or loans) deducted from RHI payments over 7 years 11 Renewable Heat Incentive

12 Proof for application process Installer will register system on MCS database and provide certificate. System owner must complete online application process and supply: MCS certificate (or equivalent) number EPC number Green Deal Advice Report number Declarations, personal information and bank details for payment In some circumstances more info will be needed, such as second homes & homes retaining fossil fuel heating options 12 Renewable Heat Incentive

13 New sustainability requirements Spring 2014 Minimum 60% GHG emission saving relative to EU fossil fuel heat average Spring 2015 Land criteria introduced: UK Timber Standard for woody biomass; RED for other types Biomass Suppliers List (BSL) will provide an easy way for participants to comply All existing & new applicants MUST comply with criteria, from date legislation in force. This will impact any fuel purchased now but intended for use later 13 Renewable Heat Incentive

14 Responsibilities of scheme participants Condition of joining scheme is to abide by the rules, which include: Keeping heating system & metering equipment (if applicable) in good working order Informing Ofgem if: Equipment breaks down and is not working while waiting for repairs Property is sold (with the heating system in) new owners can apply Any changes made to heating system (e.g. replacing part of system) Any changes to situation mean system needs to be metered There are any changes in circumstances To continue to receive payments annual compliance declaration needs to be completed Ofgem will carry out series of desktop and site audits to verify declarations are accurate these are randomly chosen to anyone could be selected 14 Renewable Heat Incentive

15 Treatment of Legacy applicants For those who have already installed eligible systems, Legacy applications will be staggered: Phase Who can apply Months 1-3 Months 3-6 New applications Legacy that was not part funded by RHPP New applications Legacy that was not part funded by RHPP Legacy part funded by RHPP (applied for before 20 th May 2013) Months 6-12 New applications All legacy applications Year 2 onwards New applications only (within one year of commissioning date) 15 Renewable Heat Incentive

16 Social housing gets green heat Hastoe Housing Association in Devon sourced renewable heating systems for nine rural properties Electric storage heaters and open fires were replaced by Nauru 6 kw ground source heat pumps Each GSHP cost 20,000, but 7,000 was covered by RHPP grant. Can also apply for RHI funding Residents bills have more than halved, from 1,500 per year to around 720 Over the past few years, we have installed hundreds of ground source heat pumps and have found them to be the most efficient and cost effective heating solution on the market. 16 Renewable Heat Incentive

17 For more information: Domestic Non-domestic Pre-application enquiries by ESAS in England & Wales: Or contact Home Energy Scotland: Ofgem deliver scheme guidance and online application form Ofgem deliver scheme Guidance on RHI enquiry line: Renewable Heat Incentive

18 Thank You Questions? 18 Renewable Heat Incentive