Renewable Heat Incentive

Renewable Heat Incentive

The Department of Energy and Climate Change claim that around half (49%) of the energy consumed in the UK is used to produce heat. Therefore it is not surprising that in March 2011 the UK Government introduced a scheme to reduce the effect of heat production on the environment.

The scheme is known as the ‘Renewable Heat Incentive’ (RHI) which provides customers with cash back for the generation of renewable heat. The RHI Scheme encourages users to replace existing fossil fuel heating systems such as oil, coal and gas with one of the supported renewable technologies which currently include;

·        Ground Source Heat Pumps,   

·        Solar Thermal Panels,

·        Biomass Boilers

·        Biomethane. 

The RHI scheme is available in England, Scotland and Wales. It is being introduced in a phased approach. The first phase is targeted at non-domestic customers “the big emitters” which contribute 38% of the UK’s carbon emissions. This sector covers everything from large scale industrial heating to small business and community heating projects. Application for non-domestic RHI opened on 28^th November 2011. If you have recently installed one of the above technologies or are thinking of doing so; you can apply now @ https://rhi.ofgem.gov.uk/.

                                                 

The second phase will be available to domestic properties. It was supposed to be launched in October 2012 but the unexpected delay in the launch of phase 1 has led to a review of the launch date of phase 2. Until phase 2 is launched householders can apply for a Renewable Heat Premium Payment.  This is a Government grant to help pay for renewable technologies. 

Any householder installing a solar thermal system in England, Scotland or Wales can apply for a Premium Payment.  However, those wishing to install a biomass boiler, or a ground source or air source heat pump, are only eligible for a Premium Payment if they are living in an area that is not connected to the gas grid and are therefore using alternative heating sources such as oil, LPG, solid fuel or electricity. The amount of money available depends on the technology chosen as per the table below;

EPC- The early bird catches the worm

From 2018 Energy Performance Certificates will have a greater impact on the energy efficiency of the Uk building stock. The Energy Act 2011 outlined the Government’s plan to make it unlawful to let a building with a EPC Rating below E (F or G ratings) from April 2018. This will have significant implications for landlords and occupiers who wish to assign or sublet space, as almost a fifth of buildings that have an EPC fall into the F and G category, not to mention the thousands of buildings that have not yet had an EPC certificate completed.

This will kick start the much needed energy efficient improvements to commercial buildings as commercial landlords are obliged to bring their properties up to an E rating before they may be let. It will also cause a surge in the number of EPC being carried out as all landlords will need to establish their building energy rating. Improving a building by 2 energy ratings is not an easy task. It involves costly and time consuming improvements such as; replacing single glazed windows with double glazing, adding insulation to internal or external walls, replacing lighting/heating system throughout a building etc. The Government’s Green Deal Loan Scheme has been put in place to help Landlords and home owners finance these costly improvements (loans are to be paid back as part of energy bills).  

Commercial landlords with properties below an E Rating will have to complete a Green Deal assessment to identify works needed to improve the EPC. If insufficient cost-effective improvements are found, the landlord may still have to implement any works that pass the golden rule even if they do not improve the EPC to the required minimum standard. Therefore, for commercial properties with an F or G Rating, it will become mandatory to have a Green Deal assessment from 2018 onwards. For premises already let, any work undertaken under the Green Deal becomes consensual as consent must be obtained from all relevant parties that have an interest in the property. The DECC have advised that there will be no cap for commercial loans, assuming that they comply with the golden rule. (See previous green deal blog for more information on the green deal rules).

The Green Deal is expected to become available later this year. You can register your interest in a green deal loan now at; http://www.green-deal-guide.co.uk/#/apply-for-green-deal/4551449317.

Although 2018 may seem a long way off, now is the time to make a start on applying for a green deal loan to allow time for adapting your properties before this legalisation comes into force.

It is also important to note that; this legislation may also affect the value of properties. Adam Ramshaw; Associate Director at a leading property consultancy said: “The degree of risk attached to F and G rated properties is high, and will get higher as the 2018 deadline approaches. Investors should act now to understand the reasons behind a property’s poor rating.” He added: “Investors should act immediately to establish the cause of the poor ratings and establish the cost and affordability of putting things right to achieve a higher rating. This liability could lie with the landlord or tenant depending on the terms of the lease. As we get closer to 2018, Energy Performance Certificates will assume a greater significance. Investors should act now. While 2018 may seem a long way off, the impact on values will be felt much sooner.” He also warned that landlords of D and E rated buildings should not get complacent either because the regulations could become more stringent over time and incorporate their buildings too.

Paint-On Solar Cells

Paint-on Solar Cells being developed by researchers in the US. Read more @ http://www.building4change.com/page.jsp?id=1096