For more information on how your business can take advantage of this scheme and to provide you with a personalised calculation showing potential fuel cost savings please contact:  info@chpmechanical.com Tel: 04843750988

Introduction of a national Support Scheme for Renewable Heat

The Minister for Communications, Climate Action and Environment, Denis Naughten TD, is introducing a national Support Scheme for Renewable Heat after securing Government approval.

The Scheme is designed to financially support the replacement of fossil fuel heating systems with renewable energy for large heat demand non-domestic users.  This covers commercial, industrial, agricultural, district heating, public sector and other non-domestic businesses and sectors (in the non-emissions trading sector).

Minister Naughten said: “The Support Scheme for Renewable Heat is a tangible and viable measure that will kick-start the biomass and biogas sectors.  Crucially it will provide the basis to create new commercial opportunities for farmers in heat technologies including biomass boiler installations and new opportunities for foresters.  It will also contribute to meeting Ireland’s 2020 renewable energy and emission reduction targets”.

The Support Scheme for Renewable Heat will consist of two types of support mechanism:
An on-going operational support (paid for a period up to 15 years) for new installations or installations that currently use a fossil fuel heating system and convert to using biomass heating systems or anaerobic digestion heating systems.

A grant (of up to 30%) to support investment in renewable heating systems that use heat pumps.
The maximum tariffs paid will be 5.66 cents per kilowatt hour of energy produced from biomass heating systems and 2.95 cents per kilowatt hour of energy produced from anaerobic digestion heating systems. The tariffs paid will reduce with increasing output reflecting the economy of scale associated with larger systems.

The proposed tariffs for the Scheme are:

table

 

What will be supported under the Support Scheme?

Based on the economic analysis carried out, the scheme will support projects through one of the following support mechanisms:
· An on-going operational support (paid for a period up to 15 years) based on useable heat output in renewable heating systems in new installations or installations that currently use a fossil fuel heating system and convert to using the following technologies:
* Biomass heating systems;
* Anaerobic digestion heating systems.
· A grant (of up to 30%) to support investment in renewable heating systems that use the following technologies:
* Air source heat pumps;
* Ground source heat pumps
* Water source heat pumps.

How will the payment system for operational support work?

This support consists of a multi-annual payment (for a period of up to 15 years) on the basis of prescribed tariffs. The maximum tariffs paid will be 5.66 cents per kilowatt hour of energy produced from biomass heating systems and 2.95 cents per kilowatt hour of energy produced from anaerobic digestion heating systems. The tariffs paid will reduce with increasing output reflecting the economy of scale associated with larger systems. The tariffs are detailed in the Scheme Overview.

* Each tariff will set the amount of support that the Scheme participant will receive in respect of each unit of heat energy used for an eligible purpose. The tariff level for a particular project will generally be fixed for the period of support. Tariff levels will not be linked to indexation. However, adjustments may be applied to prevent windfall gains.

* The payment under the Support Scheme will be tiered based on the annual heat output (on a per kWh basis).
* The participant will receive a payment according to the tariff (c/kWh) for Tier 1 up to the first threshold value; heat output greater than that threshold will be paid at a lower tariff level up to the Tier 2 threshold, and so on for higher Tiers. Since the cost of generating renewable heat typically falls with increasing installation size, the tariff will reduce from one Tier to the next. Therefore, the more renewable heat produced the less the applicant will get paid per unit output.

What is covered by the installation grant?

The installation grant will support up to 30% of the cost of heat pumps (air source, ground source or water source).

Who will administer the support scheme?

The Sustainable Energy Authority of Ireland (SEAI) will administer the scheme and will be responsible for its operation, including evaluating and processing applications. The SEAI will also develop the draft Terms & Conditions of the Scheme for review with approval by the Minister for Communications, Climate Action and Environment.

When will the Scheme commence operation?

The next steps will be to develop the Terms & Conditions and seek European Commission State Aid approval. Subject to this approval, it is expected that the scheme will commence operation in 2018.