Upcoming changes to the Domestic RHI

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1 Upcoming changes to the Domestic RHI An overview of DECC s proposed amendments and their impact on scheme administration Harriet Arscott, Policy Manager Domestic RHI 09/12/14

2 The Department of Energy and Climate Change recently released a policy document - Domestic Renewable Heat Incentive: Changes to Eligibility which outlines the proposed amendments to the Domestic RHI scheme and the policy intent behind the changes. DECC s proposed changes are still subject to parliamentary process and approval, however it is anticipated that they will come into force in Spring This presentation will give an overview of the changes and information on how they will be administered. 2

3 Presentation overview Spring 2015 changes: - Removal of the requirement to carry out a Green Deal assessment for Registered Social Landlords - The introduction of eligible cooker stoves - The introduction of high temperature heat pumps - Updates to reflect changes to the Microgeneration Certification Scheme standards - Clarification of eligibility for properties made up of multiple buildings Autumn 2015: Biomass sustainability A note on degression 3

4 Removal of the Green Deal requirement for RSLs - Registered Social Landlords (RSLs) will no longer be required to have a Green Deal assessment carried out for each property they intend to apply for. - Applies to any application submitted after the amendment regulations come into force. - RSLs will need to provide EPCs which are less than 24 months old for each of the properties they apply for (but can still get a GDAR instead). - RSLs will still need to meet the requirement to have loft and cavity wall insulation installed at the property (checked using EPC). - No extension for legacy RSLs: legacy RSLs will still need to submit applications by 08 April

5 Introduction of eligible cooker stoves - Currently, biomass stoves which generate heat to cook food are not eligible for the Domestic RHI. - DECC s proposed changes are intended to allow some biomass stoves with cooking functions, known as eligible cooker stoves to be accredited. - Eligible cooker stoves are those with back boilers and which are predominantly designed for space and hot water heating, but which can also be used for cooking. The cooking part of these stoves should not be able to be controlled separately to, and should be incidental to, the space/water heating part. - Cooker stoves commissioned before the amendment regulations come into force will have until 31 July 2015 or 12 months from their commissioning date to apply. Therefore, legacy applicants with cooker stoves will have a small extension to their application window. - Eligible cooker stoves will be listed on the PEL when the amendment regulations come into force applicants should check the PEL to see if their product is eligible. 5

6 Introduction of high temperature heat pumps - High temperature heat pumps are air source heat pumps designed to operate at temperatures above 50. Currently, high temperature heat pumps cannot get an SPF figure, which means they are not eligible (the Domestic RHI requires heat pumps to have an SPF of 2.5 or above). - In November, MCS published changes to the Heat Emitter Guide which means that high temperature heat pumps can now get an SPF of Applicants with high temperature heat pumps will only be able to apply when the amendment regulations come into force. This is because calculations using the new Heat Emitter Guide will only be allowed when the amendment regulations come in to force. 6

7 Updates to reflect changes to the MCS standards - In November, MCS published the updated installation standards for heat pumps and solar thermal plants, alongside the updated Heat Emitter Guide. - The MCS standards are referenced directly in the Domestic RHI regulations, and therefore the regulations are being been amended to reflect the new standards. - The updates to the heat pump and solar thermal installation standards are to cover new technologies (which will not be eligible for the Domestic RHI), which means that air and ground source heat pumps and solar thermal plants installed against the new standards will not need to wait until the regulations come into force in order to apply. 7

8 Clarification of eligibility for properties made up of multiple buildings - The regulations have been clarified to make it clear that heating systems which provide heat to properties comprised of multiple buildings are eligible for the Domestic RHI. - Ultimately, this will not affect the way we currently process applications for properties with multiple buildings, but is a technical clarification to aid our administration of the scheme. 8

9 Autumn 2015 Biomass Sustainability In Autumn 2015, biomass sustainability requirements will be introduced for the Domestic RHI. This means that fuel used in biomass installations will need to meet greenhouse gas and land criteria. Domestic RHI participants will need to meet this criteria by buying fuel which is listed on the Biomass Supplier s List (BSL), and will be expected to declare annually which fuel they have used. We recommend that Domestic RHI participants start buying fuel from the BSL as soon as possible in order to prepare for these changes. Link to the BSL: 9

10 A note on degression Not related to the regulations amendments, but please note that on 28 November, DECC announced that the biomass tariff will be reduced on 1 January The biomass tariff rate is currently 12.2p/kWh, and will be reduced to 10.98p/kWh. - Providing they are eligible for the scheme, anyone who submits a complete application by 31 December 2014 will receive the 12.2p tariff rate. - Degression does not affect legacy applicants. - Applicants submitting applications on or after 1 January 2015, or who apply before but are rejected on eligibility grounds, will receive the lower tariff rate. - For more information on what constitutes a complete application, please see the Essential Guide for Applicants. 10

11 Any Questions? 11

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