Greenerheat At The Royal Welsh Spring Festival 2016
Greenerheat, in collaboration with Wood Energy Solutions, will be at this year’s RWAS Spring Festival, on 21st and 22nd May 2016. If you book tickets in advance, you can save on the standard entry fees. Please see this link for lower priced tickets http://www.rwas.wales/spring-festival/
This is a wonderful event with many unique products and is an excellent platform for us to showcase one of our innovative biomass combined heat and power units (CHP), alongside some of our other products.
So if you are able to attend the show, please come and visit us on stand number SC148. This is located in the ‘Smallholder Centre’ in the South Glamorgan Hall. We would be delighted to see you and have an informal chat and to see if we are able to help with your current energy costs, as well as advising you on the financial incentives available from the government’s renewable heat incentive RHI.
If you are unable to make the show but would still like to save money on your current energy costs, please contact us to discuss. There is no cost or obligation, however we are confident we can save you money, and even provide an income, just by utilising renewable energy products in place of equipment that burns fossil fuels.
Changes to the RHI
Government Unlikely To Proceed With Solar VAT Hike
It has been another busy three months since RECC last newsletter with plenty to report. The hike in VAT for solar, wind and hydro looked like a forgone conclusion until a last minute u-turn amid mounting political pressure. There have also been changes to the RHI with further developments anticipated, for example, the proposal to remove RHI eligibility for solar thermal.
There are increasing signs that Government will not proceed with proposed increases in VAT for renewable energy systems. Chancellor George Osborne agreed with opposition parties and rebel Tory MPs that the Finance Bill should be amended to give the Treasury the power to overturn the EU’s VAT rules and avert thousands of industry job losses. The issue dates back to 2012 when the European Commission first challenged the UK’s application of the 5% rate for energy-saving materials under the VAT Directive.
In June 2015 the European Court of Justice ruled that the UK’s reduced rate for some renewable energy technologies was illegal. HMRC consulted in December 2015 proposing that VAT on these should increase to 20% from 1 August 2016. Three technologies (solar, wind and hydro) were singled out for complete removal from the reduced rate. Other technologies would remain eligible in cases of ‘social need’. The Government response was expected in the 16 March Budget but this item was removed at the last minute from the Chancellor’s speech.
The European Commission then published a VAT Action Plan on 7 April proposing to allow more flexibility for Member States to determine VAT rates. Industry groups have been pressing for official confirmation that the increase will now not go ahead. Treasury Minister David Gauke reiterated recently that the proposal to raise the VAT rate on solar was now ‘off the table’.
RHI Consultation
Government is proposing to reform and refocus its support under the domestic and nondomestic Renewable Heat Incentive (RHI). On the domestic side, in summary, Government is proposing to increase support for heat pumps, to freeze support for biomass boilers and to withdraw support for new solar thermal systems from 2017.
Some changes took effect from April 2016. They included:
• budget cap introduced with a backstop based on the annual budgets assigned to the RHI;
• degression triggers extended from the final trigger points set out in regulations across all technologies;
• future annual tariff inflation adjustments switched from the RPI to the CPI index;
• requirement for a Green Deal Assessment removed;
• new self-build properties exempted from the 183 days occupancy declaration;
• Ofgem permitted to request new EPC and amend RHI payments accordingly in case of error in original EPC;
• requirements for equivalent schemes to the Microgeneration Certification Scheme (MCS) amended.
RECC’s response to the consultation is available on the RECC website.
Global Emissions Stand Still
“Global emissions of carbon dioxide stood at 32.1 billion tonnes in 2015, having remained essentially flat since 2013”, says the IEA.
“Preliminary data suggest that electricity generated by renewables played a critical role, having accounted for around 90% of new electricity generation in 2015; wind alone produced more than half of new electricity generation.”
For the second year running CO2 emissions flat lined even as the global economy was growing at around 3%, writes Alex Kirby. But sharply rising temperatures show the need for further massive renewable energy deployment to actually bring emissions down.
The world continued to make progress towards a low-carbon economy during 2015, according to analysis by the International Energy Agency (IEA).
It says analysis of preliminary data for the year reveals that global energy-related emissions of carbon dioxide - the largest source of man-made greenhouse gas emissions - “stayed flat for the second year in a row.”
The IEA announcement is doubly welcome as some Arctic temperatures continue to warm bizarrely. It comes a day after reports from Fort Yukon in Alaska said temperatures there had reached up to 10°C higher than expected for this time of year.
And as reported today on The Ecologist, temperature rises recorded in January and then in February this year broke all records following two consecutive ‘hottest ever’ years in 2014 and 2015. Temperatures is some parts of the Arctic were as much as 16C higherthan usual in February. The northern hemisphere as a whole was 2C warmer.
Fatih Birol, the IEA’s executive director, said of the emissions report: “Coming just a few months after the landmark COP21 agreement in Paris, this is yet another boost to the global fight against climate change.”
UK Oil Prices
Oil prices starting to increase, Government plans to reduce the RHI tariffs in 12 months’ time and this will obviously impact your potential returns for switching to renewable energy. Now is the right time to switch to an environmentally friendly heating source, it won’t get better than right now.
The UK’s leading online heating oil supplier Boilerjuice.com, which delivers millions of litres of domestic oil every month provides an accurate, up-to-date oil price chart for the UK. Their charts compare trends over a period of years, months or weeks. And shows a slight increase in prices since January this year.
If you are considering upgrading your heating and gaining financial support from the government then contact us today to find out how we can help you or your business.
Tariffs And Payments For The Domestic RHI
Tariffs are the rates for the Domestic Renewable Heat Incentive (RHI) payments. People who join the scheme and stick to its rules, receive quarterly payments over seven years. The rates are set by the Department of Energy and Climate Change (DECC).
During your seven years’ scheme membership your tariff rate changes to be in line with RPI or CPI, calculated in April each year. It does not change for any other reason. These updates will happen automatically.
- Applications submitted before 1 April 2016 have their tariffs adjusted in line with the Retail Prices Index (RPI).
- Applications submitted on or after 1 April 2016 have their tariffs adjusted in line with the Consumer Prices Index (CPI).
To view publications and updates please follow this link to Ofgem website.
Easter Sale
Don’t forget our Easter sale where you can get 10% discount on supply of equipment ordered between now and the 22nd April 2016. Use the promotional code ‘EASTER16’ to obtain the discount. If you would like any more information please contact us now.
T&C apply.
DECC Latest RHI Updates
DECC issued the monthly RHI deployment data on 17th March. It shows Domestic RHI registrations with Biomass coming in at a very healthy 39% of applications, and although there has been a recent drop in applications due to previous domestic tariff digression, there is no drop this quarter. To review the data yourself follow this link: Read More here.
The latest RHI Consultation was also issued this month, and although there are a few surprises, there is continued support for biomass, which gives you the opportunity to offer some stability in RHI forecasting for potential new customers =
The_Renewable_Heat_Incentive_-_A_reformed_and_refocussed_scheme
Moving a focus from new installations onto those boilers that are already installed – both the Domestic and Non-Domestic RHI scheme require applicants to have their boiler regularly serviced and maintained by a trained and competent engineer. Get in touch now and we can arrange an engineer to service your renewable technology.
Easter Discount At Greenerheat
We are delighted to offer a 10% discount on supply of equipment ordered between now and the 22nd April 2016. Use the promotional code ‘EASTER16’ to obtain the discount. If you would like any more information please contact us here.
Greenerheat is the leading renewable energy company in South Wales and Carmarthen. Please take a look at our sustainable renewable energy products to see how you can benefit from low energy costs whilst reducing your environmental impact.
Terms and conditions apply. This offer cannot be used in conjunction with any other discounts or offers - including trade discounts and free to fit schemes. Discounts will not apply to installation.
2016 Budget And The Environment
Despite rising global temperatures now shattering all records, the issue of climate change did not get a single mention in George Osborne’s speech this week.
Worse than the missing words, the budget did almost nothing to support the clean energy economy the UK needs to develop for the 21st century, and did a lot to block it.
There was no support at all for the established, cost-effective renewables that the government has slashed: solar power and onshore wind. It admits thousands of jobs are being lost in this sector but, unlike oil and gas jobs, these seem not to matter. Energy efficiency programmes, which should always be the first choice in tackling energy and climate problems, are being cut 80% by Osborne.
Richard Black, director of the Energy and Climate Intelligence Unit, sums up Osborne’s double think budget: “The chancellor said several times that this was a budget for future generations, [but] it’s not evident that he has internalised the implications of the recent Paris climate summit. The concrete measures he’s announced barely make a difference to this generation.”
For the full article from The Guardians Damian Carrington please click here.
Domestic RHI; Recent Developments
The Department of Energy and Climate Change (DECC) has announced some important changes to the Domestic RHI scheme that will affect future applicants in different ways. We’ve summarised these below, but for full details please see here.
New builds and their occupancy requirement
What’s changing? Applicants who declare that they have built their own property will no longer be required to have metering installed if they have lived in the property for fewer than 183 days (half a year) when applying to the scheme.
Green deal advice report
What’s changing? A Green Deal Advice Report will no longer be required when making an application for the Domestic RHI; you will just need to have an Energy Performance Certificate that’s less than 24 months old.
From retail prices index to consumer prices index
What’s changing? The annual tariff increases will now be calculated using the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) for those applying to the scheme from 1 April 2016. The CPI is similar to the RPI, but includes some different products and services.
Free Biomass CHP For Your Business
Heat And Power Your Business With A FREE CHP Unit
We can now offer a combined heat and power biomass unit completely free of charge for customers who are eligible for the Governments 20 year non domestic RHI payment incentive. There are also other flexible payment options available and are listed below. We are confident we can provide a suitable and affordable solution for you and your business.
Biomass wood pellet CHP for space heating, hot water and electricity generation. Four simple purchasing options to provide flexibility.
Free to Fit
Our finance partner will provide the full capital outlay for the supply, installation and maintenance of your CHP biomass boiler. The financier will receive all incentive scheme payments in return. Ownership passes to you at the end of the 20 year incentive scheme period.
5 Year Lease
Similar to a standard hire purchase agreement, a deposit is required followed by 60 monthly payments. You will receive all of the incentive scheme payments for up to 20 years. Ownership passes to you at the end of the 5 year term.
0% Deposit
A lease purchase option with no deposit requirement. 84 Equal repayments, covered by the incentive scheme income and ownership passes to you after the final repayment. You will continue to receive the incentive payments for up to 20 years.
Out Right Purchase
You finance the full cost of supply and installation. You own the boiler from the outset and receive all of the incentive scheme payments for up to 20 years.
Terms and conditions apply.
To contact Greenerheat for a FREE, no obligation, site survey to discuss your options and change over to clean green heating CLICK HERE.
