The Renewable Heat Incentive Scheme (Amendment) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which apply to Great Britain, amend the Renewable Heat Incentive Scheme Regulations 2011 (“the principal regulations”).

Regulation 3 amends a number of the definitions in the principal regulations.

Regulation 6 removes the requirement that participants generating heat from waste must use only municipal waste.

Regulation 8 substitutes a new regulation 8 specifying the eligibility criteria for plants which generate heat using ground source heat pumps. Heat pumps which are accredited after these regulations come into force will be required to demonstrate a seasonal performance factor of at least 2.5. Such heat pumps will be permitted to use energy from a wider variety of sources including waste from processes.

Regulation 9 specifies eligibility criteria for plants which are air source heat pumps.

Regulation 10 substitutes a new regulation 9 specifying the eligibility criteria for plants which are CHP systems. CHP systems which are accredited after these regulations come into force will be permitted to use energy from more than one type of fuel provided the different fuels are burned in separate combustion units.

Regulation 11 specifies the eligibility criteria for certain CHP systems which generate heat and electricity from biomass and which may be eligible for a specific tariff set out in Schedule 3B provided they are certified under the Combined Heat and Power Quality Assurance standard.

Regulation 14 substitutes a new regulation 13 amending the requirements for certification under the Microgeneration Certification Scheme (MCS) for plants below 45kWth in capacity.

Regulation 16 makes provision for metering in order to enable the seasonal performance factor of a heat pump to be calculated.

Regulation 18 substitutes a new regulation 23 which amends the rules relating to the payment of grants from public funds for the purchase of plant or equipment used to produce biomethane. This regulation makes provision for a grant funding deduction in specified circumstances.

Regulation 19 amends regulation 25 of the principal regulations, in particular by providing that a maximum initial capacity will be specified on the first occasion when a producer of biomethane is registered.

Regulation 21 introduces a new provision which will allow producers of biomethane to apply for preliminary registration.

Regulation 23 amends regulation 28 of the principal regulations to make provision for participants generating heat from solid biomass contained in waste, in particular to provide that the proportion of biomass must be at least 10%.

Regulation 28 amends regulation 34 of the principal regulations to make provision for additional ongoing obligations, in particular in relation to CHP systems.

Regulation 29 substitutes a new regulation 37 in the principal regulations. This provides in particular for the new tariffs set out in Schedules 3A (amended tariffs in relation to large biomass, ground source heat pumps and solar collectors) and 3B (amended tariffs for biomass CHP systems and deep geothermal and the introduction of support for air source heat pumps and biogas combustion over 200kWth).

Regulations 31 to 35 make further provision in relation to the calculation of tariffs and expenditure forecasts. Regulation 35 inserts a new regulation 37F in the principal regulations to prescribe how the Secretary of State is to determine the increase in expenditure forecast to be published on 1st September 2014 in the light of changes made by these regulations to the tariff categories.

Regulation 38 introduces provisions relating to the calculation of periodic support payments for CHP systems which generate heat from solid biomass or biogas together with other types of fuel.

Regulation 38 also inserts a new regulation 39C in the principal regulations, in relation to the calculation of periodic support payments. It provides that no payments may be made for heat generated by any capacity of a CHP system in respect of which payments under the Renewables Obligation Order 2009 or the Renewables Obligation (Scotland) Order 2009 are payable.

Regulation 42 substitutes a new regulation 43 in the principal regulations to provide for the accreditation of additional capacity and setting out how periodic support payments will be paid in respect of such additional capacity.

Regulation 43 inserts a new regulation 43A in the principal regulations to provide for registration in respect of additional capacity for biomethane. A maximum additional capacity will be specified where a participant is registered in respect of such additional capacity.

Regulation 45 makes various amendments to Schedule 1 in relation to the information which is to be provided by an applicant for accreditation or registration.

Regulation 46 makes various amendments to Schedule 3 of the principal regulations relating to tariffs.

Regulation 47 inserts new Schedules 3A and 3B providing different tariffs for certain eligible installations.

Regulation 48 substitutes a new Schedule 4 in the principal regulations to specify updated total expenditure thresholds for the calculation of tariffs in accordance with regulations 37C and 37D.

Regulation 49 substitutes a new Schedule 5 in the principal regulations, to specify updated expenditure thresholds for individual technologies for the calculation of tariffs in accordance with regulations 37C and 37D. The thresholds in Schedules 4 and 5 form part of the cost control mechanism in the regulations.

Documents published on www.microgenerationcertification.org are also available from Gemserv Limited at 10 Fenchurch Street, London, EC3M 3BE.

Documents which can be obtained from the British Standards Institution at www.bsigroup.com can also be obtained from the British Standards Institution customer services at 389 Chiswick High Road, London, W4 4AL upon payment of a fee.

Documents published on www.decc.gov.uk can also be obtained from the Department of Energy and Climate Change at 3 Whitehall Place, London, SW1A 2AW.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department of Energy and Climate Change at 3 Whitehall Place, London, SW1A 2AW and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.