Dáil Éireann Debate, Thursday - 10 November 2016
306. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment when the renewable heat incentive will be available for domestic energy users; the timetable for this; and if he will make a statement on the matter. [34364/16]
View answerThe introduction of a Renewable Heat Incentive (RHI) is a commitment in the Programme for Government and will be the primary support mechanism in the heating sector designed to meet Ireland’s renewable energy obligations. The aim of the RHI is to build on the progress already made in the renewable heating sector and to help reach Ireland’s 12% target by 2020. In 2015, it is estimated that 6.5% of heat was derived from renewable sources.
The proposed RHI scheme is aimed at supporting larger industrial and commercial installations outside of the EU Emissions Trading System (ETS) to change to heating solutions that produce heat from renewable sources. From a national policy perspective, the focus on the non-ETS sector is likely to accrue a double benefit for the Irish taxpayer, helping to meet our renewable energy target and reduce emissions in the non-ETS sector, simultaneously.
Analysis to date suggests that it would not be cost effective, at this stage, to include the domestic heating sector in the RHI. This is due to a number of factors including the much higher support tariff per kilowatt hour of energy that would be required to incentivise households to change heating systems as well as the significantly greater costs associated with administering the scheme for a large number of households in what is an unregulated sector.
The overall costs and technologies to be supported under the new RHI Scheme will be subject to Government approval and State aid clearance from the European Commission. It is expected that the RHI will open for applications in the latter half of 2017.
