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UK, Finance and Incentives

UK: How Does Solar Thermal Sustain against Photovoltaics and Biomass?

Submitted by Baerbel Epp on November 30, 2017
KingspanAt the end of 2016 the solar thermal industry association STA campaigned successfully for solar thermal to remain in the two Renewable Heat Incentives (RHI). However, the year 2017 was so far weaker than the previous years. In the domestic RHI there were 423 residential applications accredited from January to September 2017, compared to 537 in the same period of the previous year. Approved applications for commercial solar thermal plants with in the non-domestic RHI were down to 19 in this same period from 36 in the previous year.  The photo shows a 155 m² installation on the roof of the new Star Community Centre in Cardiff that opened its doors in September 2016. 
Photo: Kingspan
 

Great Britain: Solar Thermal to Remain in the Renewable Heat Incentive Scheme

Submitted by Baerbel Epp on January 9, 2017
non-domestic RHIAfter several months of consultation about removing new solar thermal systems from the Renewable Heat Incentive (RHI) starting in 2017, the British government announced on 14 December 2016 that the support will in fact continue. The government published the results of the consultation in a document called The Renewable Heat Incentive: A Reformed Scheme (see attached pdf). Here it was announced that support for new solar thermal installations will in fact continue through the RHI scheme without changes. Hence the tariff for the households will remain at the current level of 0.1974 Pound Sterling (GBP)/kWh paid over seven years and for non-households the tariff will remain at the current level of 0.1028 GBP/kWh over 20 years. Solar space heating is still not eligible. The chart shows the small portion of solar thermal accredited installations (1.57 %) in the non-domestic RHI between Q2 2014 and Q3 2016 – in total 223 solar applications since the start of the programme.
Chart: Ofgem
 

IEA SHC: 20 Country Profile Analyse Market and Industry Development

Submitted by Baerbel Epp on September 3, 2015
SHC country members“The Renewable Heat Incentive in the United Kingdom has failed to stimulate the market for solar thermal, which continues to contract. There are technical issues in the regulations preventing the use of solar thermal with other renewable heating systems, such as biomass and heat pumps, and the subsidy rate is relatively low compared to the feed-in tariff for solar photovoltaics.” This clear statement was made by Dr Robert Edwards, Director in the Science and Innovation Group at the Department of Energy and Climate Change (DECC). He represents the country in the Executive Committee of the IEA Solar Heating and Cooling (SHC) research programme and delivered an updated country profile of the British solar thermal market in June 2015. As part of its services, the IEA SHC programme publishes updated market profiles of all 20 member countries each year. You will find the list of member countries online and the link to the country profile at the bottom of each country page. The statement by Edwards is part of the latest UK country profile.
 

Great Britain: Performance of UK Green Deal Scheme

Submitted by Baerbel Epp on November 14, 2014
Green DealUK Energy Minister Greg Barker, initiator of The Green Deal, called it a “flagship energy efficiency programme” during the launch of the scheme in the beginning 2013. One and half years later Barker stepped down as minister and the statistics of the Green Deal shows a rather poor performance despite more than half-a-billion pounds of taxpayers’ money being spent. The question is now whether the whole scheme can survive after the parliament members of the Energy and Climate Change Select Committee report delivered a highly critical review of the programme’s performance and describes how “the first eighteen months of the Green Deal have been largely wasted”. 
Banner: Department of Energy and Climate Change (DECC)
 

Great Britain: Performance of the two UK Renewable Heat Incentive Schemes

Submitted by Baerbel Epp on November 3, 2014
UK RHI statisticsThe UK has two Renewable Heat Incentives (RHI) that assist solar thermal. The non-domestic variant (non-dRHI) has operated since November 2011. The variant for households (dRHI) has operated since April 2014. Whereas the share of solar thermal applications within the non-DRHI is still low with 3 % (left chart), every fifth new domestic renewable heating system contains a solar water heater (right chart). For solar thermal, the non-dRHI currently pays 0.10 GBP/kWh for 20 years and the dRHI currently pays the end-user tariff at a rate of 0.192 Pound Sterling (GBP)/kWh for 7 years. Both rates will be annually adjusted for inflation through the payment period. The pie charts show the numbers of accreditations of non-dRHI and dRHI technologies. 
Source: Gas and Electricity Markets Authority (Ofgem)
 

Renewable Energies for Remote Areas and Islands (2012)

Submitted by Raquel Ponte Costa on September 11, 2014

The Renewable Energy Technology Deployment, a sub-group of the International Energy Agency with the mandate to accelerate the market introduction and deployment of renewable energy technologies, issued in 2012 a report on the possibility of deploying renewable energy technologies into remote islands and regions. The communities studied in the report live in different climate conditions and latitudes, from Alaska to Spain, from Japan to Ecuador, but face similar problems in terms of distance from more populated areas. The report shows technical, economic and energy issues facing remote areas; it provides examples, perspectives and inspiration on how to develop sustainable energy strategies, ultimately reducing long-term costs of energy.

The domestic Renewable Heat Incentive

Submitted by Baerbel Epp on May 4, 2014
The domestic Renewable Heating Incentive (dRHI) for England, Wales and Scotland has been launched on 9 April 2014. During 2016 the UK government consulted to remove solar thermal from this schemes, but this proposal was rejected just before 2017. The tariff rate for solar thermal remained steady during 2017 with only minor adjustments for inflation according to the Consumer Price Index (CPI) and is at 0.1044 Pound Sterling (GBP) per kWh payable for 20 years at the end of 2017. The recipient of the subsidy is the owner of the heating system.

Effective Date: 
Saturday, January 1, 2011

Great Britain: Domestic Renewable Heat Incentives with Extensive Rules

Submitted by Baerbel Epp on April 23, 2014
The domestic Renewable Heating Incentive (dRHI) for England, Wales and Scotland has been launched on 9 April 2014. For solar thermal, the dRHI will pay the end-user tariff at a rate of 0.192 Pound Sterling (GBP)/kWh for 7 years. The existing non-domestic RHI scheme continues at a new rate adjusted for inflation of 0.094 GBP/kWh for 20 years. The dRHI applies to biomass boilers & stoves, ground-source & air-source heat pumps heating and solar thermal DHW for single homes. The subsidy is for properties capable of getting a domestic Energy Performance Certificate (EPC) which confirms the property is a domestic dwelling. The recipient of the subsidy is the owner of the heating system. So this can be the person owning and living in the home, a private landlord or a registered social landlord. In general it is not applicable to a new home unless this has been self-built. Other requirements are that the property should also have a Green Deal Assessment (GDA) and where the GDA recommends installing loft and cavity wall insulation, these must first be fitted before applying for the dRHI. New self-built house can be exempt from the GDA requirement, as these will be assumed to have adequate building insulation. There are initial costs to the user to first obtain the EPC and GDA. (Find more information in the database of incentive programmes.) 
 

Great Britain: Renewable Heating Incentive for Households is slowly revealed

Submitted by Baerbel Epp on March 26, 2014
The UK Renewable Heating Incentive (RHI) for Households, including assistance for solar thermal, has been announced since 2010 despite the non-household version being launched late in 2011. Positive signs indicate this will now be ready before summer 2014, as the UK government recently passed the relevant draft statutory instrument. This is the result of the consultation process which start in September 2013 based on a proposal of Department of Energy & Climate Change (DECC).
 

SMEThermal 2014: “Take the risk away from the customer and the financier”

Submitted by Baerbel Epp on March 4, 2014
SMEThermal 2014Solar thermal is not just about technology, it´s also about financing. It takes much more than just an improved, mature technology to have a successful industry. It needs new business models which attract the financial sector and it requires transparency in terms of performance and costs when dealing with commercial clients. These were the major topics of a roundtable discussion at SMEThermal 2014 in Berlin, Germany, on 18 February 2014. Solar thermal specialists from three different continents – Europe, Asia and North America – presented their case studies at the conference (from left): Søren Elisiussen, CEO of Arcon Solar (Denmark), Nicholas Atkins, Managing Partner of Georgieff Capital Advisors (United Kingdom), Thippegowda Srinath, Technical Director at Emmvee Solar Systems (India), Justin Schafer, Product Manager at Skyline Innovations (USA) and Robin Welling, Managing Director of Tisun (Austria). The roundtable discussion was chaired by Bärbel Epp, Managing Director of solrico (Germany).
Photos: Stephanie Banse
 

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