The Support Scheme for Renewable Heat (SSRH) is a Government scheme that provides financial support to renewable heat generators for a 15-year period. It was formally introduced on 16 June 2019. The scheme is administered by the Sustainable Energy Authority of Ireland (SEAI) and technologies covered in the non-domestic sector include solid biomass, anaerobic digestion (AD) heating systems together with air-, ground- and water-source heat pumps.

The SSRH is open to commercial, industrial, agricultural, district heating operators or other non-domestic heat users at sites not covered by the Emissions Trading Scheme (ETS). Ireland has committed to reducing its carbon emissions. The use of biomass for renewable heating helps a farm business contribute to carbon reduction targets.

The scheme aims to support up to 1,300 gigawatt hours (GWh) of renewable heat per year. This is the equivalent to the heating needs of circa 120,000 homes.

The use of biomass boilers instead of oil or gas burners is now being incentivised

Operation of the SSRH

For heat pumps, there is a 30% investment grant available. This includes air-source heat pumps, ground-source heat pumps and water-source heat pumps.

For biomass heating systems and AD heating systems, the supports are in the form of operational aid based on eligible heat use. Ongoing quarterly payments will be paid for 15 years based on a tariff which is tiered (reduces as heat output increases).

There are no minimum or maximum heat capacity limits for projects other than district heating where a minimum eligible size applies of 70kW. An estimate of the annual eligible heat will be required. This would include gas, oil or coal bills for the previous 12 months.

There is also no point in driving heat into an inefficient, poorly insulated building, so projects will have to demonstrate energy management (describe how you manage your energy and identify opportunities for reduction).

What is eligible heat?

To qualify under the scheme, heat must be both useful and used for eligible purposes, ie the heat demand must be economically justifiable. Areas such as space heating, water heating and process heating are eligible. Some exclusions would include open spaces, wood-fuel drying and electricity generation.

Tariffs available

Table 1 lists the tariffs which are available for new or existing installations which convert from fossil fuel use such as coal, oil or gas to biomass.

Example

If a poultry unit currently using kerosene or propane changes to using woodchip combusted in a biomass boiler, the SSRH can be applied for. If we assume the current heat usage on propane gas is 1,200MWh per annum, they would need an equivalent amount of woodchip to replace it.

The SSRH tariff available for this poultry unit is outlined in Table 2.

If we assume that the overall conversion project cost €210,000 including boiler house and storage and that oil is costing €0.55c/l or €52/MWh and wood chip was available at €40/MWh, this gives an annual saving of €12/MWh even at the current low oil prices: €12 x €1,200 = €14,400 of an annual saving on fuel. Note that fossil fuel costs are expected to rise as economies improve and carbon taxes are increased. We can also assume additional operational costs of the biomass boiler of €5,000 per annum. See calculations outlined in Table 3. The example in Table 3 is for illustration purposes and payback will increase as fossil fuel prices increase. It will be important to lock into supply contracts with wood chip suppliers that are WFQA approved.

Application process

The application is done through SEAI’s online web portal. Additional technical documentation will be required to supplement the application. SEAI will then issue a letter of offer and the site will be subject to an inspection at any stage. Once the letter of offer is received, the equipment can be installed and commissioned. This will be followed by an on-site inspection. Payment stages will be agreed and a formalised contract put in place between SEAI and the project owner.

Measuring the heat

Meters at point(s) of heat use (MID Class ll supported by MBUS or Pulse) will be required to accurately measure qualifying heat. Some projects may require multiple meters. The requirement for meters and meter readings will be established by SEAI for each project.

Meter readings will have to be submitted on a quarterly basis, confirming the amount of renewable heat energy used for eligible purposes.

How can farmers and rural areas benefit?

Farmers can potentially benefit from the SSRH, depending on their circumstances. Farmers can benefit if they have a heat demand on-site by replacing a fossil fuel with a cheaper biomass alternative. They can also benefit by becoming actively involved with agri biomass supply chains such as an oil depot being replaced as a biomass trade centre.

Biomass fuels are provided by local supply chains. Choosing biomass heating could lead to more rural employment. Using less carbon-based fuel could mean paying less carbon tax by switching to biomass heating. Savings are calculated based on a carbon tax cost of €26/t of CO2, as of May 2020.

Biomass heating systems are very relevant to the pig, poultry and commercial horticulture sectors. Choosing biomass to heat your business could lead to lower fuel costs and savings in business operations. There can also be corporate benefits to reducing the carbon footprint of the workplace. This can create a marketable opportunity. Many businesses have publicised their internal sustainability efforts.

The SSRH could be of particular benefit to those in rural areas with a limited choice of heating fuels. As with all funding support schemes this is a complicated area, but if you are not on the gas network and using electricity, LPG or oil for your heat, the SSRH can transform the way in which you make your heating choices.

Sustainability requirements

All biomass fuel must meet (and continue to meet for the period of support) the scheme sustainability requirements in order to receiver scheme payments.

Applicants must produce heat with lifecycle GHG emissions of less than or equal to 24g CO2eq/MJ of heat generated in order to be eligible under the scheme. This equates to a minimum 70% GHG saving compared to a fossil fuel comparator for heating of 80g CO2eq/MJ.

Sustainability criteria will apply to biomass feedstock.

Certification of feedstock through approved sustainability certification schemes such as the Wood Fuel Quality Assurance (WFQA) scheme administered by the Irish Bioenergy Association (IrBEA) will be used to demonstrate compliance as identified by SEAI.

Farmers should consider how the SSRH can support their choices for a low-carbon and lower-cost future.

FIND OUT MORE

For more information on the scheme, contact SSRH@SEAI.ie or visit www.seai.ie.