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Support for Renewable Energy - Non Land-Based

What is this about?

To encourage rural communities and businesses to install small scale renewable energy capacity as a way to help diversification of the rural economy and improve the quality of life for rural areas. As part of a wider programme of rural diversification measures, sharing the cost of investment in renewable energy projects, can contribute towards this aim.

What will be achieved?

  • Strengthen rural communities
  • Reduction in carbon emissions
  • Environmental improvements
  • Help towards developing a local, sustainable energy supply
  • Result in improvement in the viability of any non-land based business enterprise

What you can do?

Two distinct elements:

  1. Purchase and install a renewable energy system.
  2. If installing a biomass boiler, you can purchase supply chain or specialist equipment to harvest and process the woodchip, pellets or logs.

Who can apply?

  • Rural communities (defined as having a population of less than 3000) whose applications are not eligible under the Communities and Renewable Energy Scheme (CARES). CARES is the Scottish Government's primary support mechanism for community renewables installations and applicants for this option must be able to demonstrate that they have discussed their project with the local CARES Development Officer who will be able to advise on their project.
  • Rural (other than agricultural or forestry) businesses which meet the definition of a micro-enterprise (ie employing fewer than 10 people and whose turnover and/or annual balance sheet total does not exceed €2m)

Eligibility Criteria

  • To be eligible for this Option, 51% or more of the energy produced would need to be used for the business's/rural community's own consumption . Applicants will be required to demonstrate this eg by providing meter readings of power consumed or details of the amount of fuel purchased over a given period.
  • "Own consumption" means consumption by the community or business. It does not include selling electricity to the grid.

What technologies and or equipment are supported?

  • Small scale wind turbines
  • Hydro-electric turbines
  • Solar panels
  • Automated woodfuel boilers
  • Heat pumps
  • Solar water heating
  • Specialist equipment for harvesting biomass, pre-use processing (e.g. dryers, chippers, pelletisers), quality assurance (e.g. for checking moisture content, chip size, etc.) and handling.
  • Supply chain equipment

Which products and installers can I use?

  • If installing a Micro renewable energy system (defined as up to 50kW electricity generating capacity or 45kW heat capacity) the product and the installer must both be accredited, under the UK wide accreditation system called the Microgeneration Certification Scheme (MCS).
  • The exception to this is for hydro installers, where an accreditation scheme has not yet been established. Subject to confirming that more than one quote has been obtained, work can be carried out by local expertise under the supervision of a qualified advisor who can sign off installations to confirm that appropriate standards have been met
  • Details of installers and products can be obtained from the Microgeneration Certification Scheme website http://www.microgenerationcertification.org/ or on 020 7090 1082.
  • Independent advice on all aspects of installing renewable systems can be obtained from your local Energy Saving Scotland advice centre on 0800 512 012 or via their website at www.energysavingtrust.org/schri/household/how.cfm

Technical requirements for biomass installations

  • All Combined Heat and Power (CHP) installations must meet the criteria set for Good Quality for the purposes of Enhanced Capital Allowances (ECA) scheme as set out in the CHP Quality Assurance (CHPQA) Programme.
  • If located in a Smoke Control Area, must install an exempt appliance

What costs are supported?

  • Purchase and installation of equipment, including construction, upgrading or development of infrastructure
  • Purchase of specialist equipment for harvesting, pre-use processing, quality assurance and handling of wood fuel for the supply chain
  • Direct set up costs related to the creation of producer groups, including legal and administrative work in setting up, rental of office accommodation and purchase/rental of office and IT equipment.

Rate of support?

  • Up to 50% of eligible costs will be supported

Type of Support

  • A one-off capital payment will be made against equipment and installation of renewable energy schemes

Inspections/verification

  • All final claims must be certified by an independent accountant and must be accompanied by relevant invoices
  • You must allow any person, duly authorised, to have access to allow an inspection to take place. An inspection may take place at any reasonable time either before or after completion.
  • If applicable, the Microgeneration Certification Scheme list of registered installers will be checked
  • If applicable, the criteria set for good quality CHP Programme will be verified for compliance
  • If located in a Smoke Control Area must install an exempt appliance and this licence will be verified

Technical Guidance

Page updated: Friday, September 4, 2009