The Support Scheme for Renewable Heat (SSRH) is a state support aimed at replacing fossil fuel heating with renewable energy for large heat demand (eg district heating ) and commercial applications. Announced by Minister for Communications, Climate Action and Environment, Denis Naughten, the scheme’s details and administration are the responsibility of the Sustainable Energy Authority of Ireland (SEAI). It is expected to be operational later in 2018. Domestic customers are not included in the upcoming renewable heat incentive scheme.
Under the Renewable Energy Directive of 2009, Ireland has a target of 12% energy for heat to come from renewable energy sources, by 2020. By end 2016 the actual figure was 6.8%.
The SSRH is designed to accelerate bridging this gap and €7m was allocated in Budget 2018 to fund the initial phase.
Tariff support for Biomass Boilers
Unlike a capital grant scheme the SSRH supports the payment of a tariff per unit of energy produced by a biomass boiler, to a maximum 5.66c per kilowatt hour. Those contracted under the scheme will receive support for 15 years of operation. Tariffs reduce with increasing output; no doubt a reflection of the Northern Ireland ‘cash for ash’ renewable heat incentive. In particular, eligibility criteria for projects will ensure heat generated is applied to useful purposes only.
Glas Energy anticipates that the renewable heat incentive will have a strong uptake and the total budget could be allocated quickly. We also believe that the maximum support is well placed to support businesses move away from oil and gas in the hospitality, education and health sectors as well as communities who are considering a district heating system.
Payment under the SSRH will be tiered based on the annual heat output (per kWh). 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.
More information is available by contacting us or from the SEAI website. The Glas Energy team is happy to have a down to earth discussion about your project, the potential tariff revenue and the feasibility of a biomass heating system meeting your heat demand.
Energy Supply Company – ESCo – Fully Funded Model
Glas Energy can provide a fully funded ESCo model for biomass heating projects. This Energy Supply Contract requires no capital expenditure by the client but offers discounted heat for the lifetime of the project. Contact us for more information.