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Low Carbon

Renewable Heat Incentive
 
In March 2011, the UK Department of Energy and Climate Change (DECC) issued the detailed policy document outlining the Renewable Heat Incentive (RHI). The RHI covers England, Scotland and Wales, is fully funded by the UK Government and administered by Ofgem.
 
Phase 1 of the scheme will have two components: long-term (20 years) tariff support for non-domestic renewable heat installations and Renewable Heat Premium Payments for domestic renewable heat installations. Phase 2 will extend the long-term tariff support to domestic renewable heat installations. The RHI for non-domestic generators opened for applications on 28 November 2011, following a short delay while DECC resolved the scheme’s compatibility with EU state aid rules and re-submitted the draft regulations to Parliament.
 
More details on the RHI can be found on the DECC and Ofgem E-Serve websites.
 
Renewable Heat Premium Payment Scheme (RHPP)
From 1 August 2011 the UK Government’s £15 million Renewable Heat Premium Payment Scheme opened for applications from England, Scotland and Wales. The fund is expected to support up to 25,000 installations with grants of up to £1,250, and run until 31 March 2012 or until the fund is exhausted, whichever is sooner. A review of the scheme is planned once £10 million of the fund has been used.
 
The Scheme has since entered Phase 2 which will run from March 2012 through to March 2013
 
The Energy Saving Trust administers the scheme and householders are invited to call 0800 512 012 or visit the Energy Saving Trust website for further information.
 
Of the £15 million fund, £4 million was set aside for registered social landlords, details of which can be found at the bottom of this page.
 
Long-Term Tariff Support
Current information on eligibility for this support is limited to non-domestic renewable heat installations, although this includes district and community heat which may serve multiple homes. This scheme is administered through Ofgem E-Serve.
 
Further information and the precise details of eligbility for non-domestic installations are available in the RHI Policy documents, the draft regulations and the draft tariff tables whcih are available on the Department for Energy and Climate Change website.
 
The RHI Process for participants. Illustration by Ofgem, Draft Guidance. Volume One. 24 June 2011.
  
Renewable Heat Premium Payment - Social Housing Stream
 
 
A third phase of the Renewable Heat Premium Payment Social Landlords competition was launched on 08 August 2012.  The competitive nature of the bids submitted during the Phase Two competition has generated an underspend which DECC are using to launch two further competitions, each with a funding pot of approximately £2.5m. This competition will be open to all eligible Social Landlords who will have until 9 October 2012 to apply.

In Phase 2, registered social landlords were invited to bid for money to support the installation of renewable heating systems in social housing stock. Given the high demand in Phase 1, the overall budget for Phase 2 had doubled to £10 million. As in the previous competition, the maximum amount per project is set at the sterling equivalent of €200,000: this ensures that it is aligned to the European Commission’s rules for state aid funding which allows state funding up to a threshold of €200,000.

In Phase 1, registered providers of social housing in England, Scotland and Wales could bid for a share of the fund up to around £175,000 per housing provider. Work on installations should have been completed, and claims for funding received, by the end of March 2012.
 
The first wave of successful bidders were announced in November 2011 and included three from Scotland - Castle Rock Edinvar, Hebridean Housing Partnership, and Dumfries and Galloway Housing Partnership. More details can be found on the DECC website.