95 per cent of RHI applications turned down

Ofgem, the body which administers the Renewable Heat Incentive (RHI), has rejected 95 per cent of applications received in the last four months.

It’s quarterly RHI report reveals that out of 376 applications, only 20 have been granted to receive the payments since 28 November 2011 – 13 in England, six in Scotland and one in Wales.

So far only businesses have been eligible for the scheme with the domestic RHI expected to be rolled out in 2013.

The energy regulator states the most applications were turned down because they did not contain enough information, supporting documents were often illegible and information provided was sometimes inconsistent.

Ofgem also concedes that the requirement for metering is an area of ‘confusion or expense’ and has therefore published a ‘frequently asked questions’ document and undertaken to provide additional guidance for the benefit of future applicants.

For example, some businesses only require a ‘simple’ metering system where all heat generated from renewable sources is used within a single building. In other scenarios, where some heat is used for non-eligible purposes such as electricity generation, a ‘complex’ metering system is required to ensure that RHI payments are made only on the heat used for eligible purposes.

Ofgem is now inviting meter manufacturers to propose solutions which would simplify this area for applicants whilst also meeting the strict criteria. It will also consider how to reduce the administration involved in the application process.