Wednesday, 21 August 2013

Renewable Heat Incentive - latest results

The latest quarterly report on the Renewable Heat Incentive (Apr-Jun 2013) indicates that uptake of the scheme remains steady and total installed capacity under the scheme now exceeds 400 MW.

RHI installed capacity and payments - cumulative
There are now 1,789 accredited installations with a further 600 applications  at various stages of processing.  76% of installations are in England, 18% are in Scotland and the remainder are in Wales.

Biomass boilers remain the dominant technology type and comprise 93% of all accredited installations.  
Proportion of accredited installations by technology type

This latest report also provides some new information on recent audits that have been carries out by Ofgem.  These focused on compliance issues but were also carried out for fraud detection purposes.  The main findings were as follows:
  • Rates of non-compliance are high and this has led to payments being suspended in some cases.
  • The main issues relate to participants not maintaining fuel records for biomass installations, particularly where harvesting their own fuel, and the incorrect installation of heat meters
As a result of these findings Ofgem has commenced a desktop audit programme to complement site audits in order to verify ongoing obligations.

The advice is, therefore, to check that metering equipment has been installed correctly, primarily by checking meter installation manuals.  For biomass installations participants need to record the quantity and type of fuel used and the date of supply to the boiler (see template here).

Remember the date - 24th September

DECC recently announced important changes to the RHI non domestic
scheme which will be implemented on 24 September.  These include changes to metering and air quality requirements.

Simplifying metering requirements

If you are applying for RHI accreditation on or after the 24 September simplified metering requirements will apply:
  • In certain circumstances disregard heat loss from external pipework where the pipework is ‘properly insulated’ to the standards outlined in BS5422 and calculated in line with and EN ISO 12241.
  • Submit heat loss calculations in place of installing additional meters in such cases where doing so might be physically or financially overly burdensome
  • Only install meters which are necessary to calculate the ‘eligible heat output’ from the installation to enable the RHI payment to be calculated.
Biomass air quality requirement

Again, from September 24th a fully completed RHI emission certificate (or environmental permit) will be required to demonstrate compliance with new air quality requirements. 

For more information, including RHI emission certificate template, see here.

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