Wood Heat Conference 2015 - Now open for bookings

The 2015 Wood Heat conference is now open for bookings.

Despite degression, the UK renewable heat industry continues to grow thanks to effective support from the Renewable Heat Incentive.

Of all the renewable heat technologies, wood and biomass heat is still outperforming all others.

The UK's dedicated biomass and wood heat industry conference will run three weeks prior to the Government's Comprehensive Spending Review, offering the opportunity to learn from the experiences of UK businesses and those overseas.

The conference has the sub-title “Raising Our Standard”, and speakers will cover subjects including:

• Fraud and compliance under the RHI
• Soft support for the biomass heat sector in Scotland, Austria and the USA
• Biomass CHP deployment in the UK
• Evaluating the in-situ performance of biomass boilers - results from DECC research
• The UK biomass boiler market

The conference will include a host of other subjects for all parts of the wood heat supply chain - installers and fuel producers/suppliers.

The conference will also include speakers from government, the Wood Heat Association and the Renewable Energy Association, enabling delegates to gain a thorough understanding of the opportunities available in the UK's modern wood heat and biomass industry.

The conference will take place on Wednesday 4th and Thursday 5th November 2015 in Bristol.

Full details can be found here.

RHI - tariff changes for biomass boilers announced

The Department of Energy and Climate Change has announced changes to the RHI tariffs for biomass in both the domestic and non-domestic schemes.

Domestic RHI

DECC announced on 29 May 2015 that the degression ‘super trigger’ for domestic biomass had been passed. 

This means that the current biomass tariff of 8.93p per kilowatt hour will be reduced by 20% to 7.14p per kilowatt hour for all new applications made from 1 July 2015.  The new tariff table is shown below.

To calculate the impact of this change simply multiply the tariff by the kWh total for space heating and hot water on your EPC (e.g. 15,000 kWh x 0.0893 = £1,339 per year for seven years).

The tariffs for domestic air source heat pumps, ground source heat pumps and solar thermal are not affected by the 1 July 2015 degression.  Legacy applicants are not affected by degression.

Non-Domestic (Commercial) RHI

DECC has also announced a 25% reduction to the small commercial biomass tariff for the quarterly period starting on 1 July 2015.

This is a fairly significant reduction that will affect the economics of schemes up to 199 kW - particularly those involving wood pellets and the replacement (partial or full) of mains gas.

Nevertheless, a subsidy is still a subsidy and 4.4 p/kWh is still a positive contribution.

The risk with this degression is that larger boilers will be installed to gain the 'medium' tariff.  Whilst tempting this is likely to be a false economy as an over-sized boiler will be used less and is likely to have worse overall efficiency (it may well cost more as well).

Our advice would be to size correctly and be satisfied that a subsidy is still available.

If your sub-200 kW project is nearing completion then you have only a few weeks left to commission and apply in order to gain the current tariff (5.87 p/kWh).

More details can be found on the Ofgem website.

Biomass Suppliers List

We have been referring to new requirements around the sustainability of biomass fuels for some time now so we were pleased to see that the Biomass Suppliers List (BSL) has now been launched.

The Biomass Suppliers List is the process employed by UK Government to ensure that publicly funded subsidies such as the Renewable Heat Incentive (RHI) remain eligible under the EU Renewable Energy Directive (RED).

The RED Directive requires users of biomass fuel that are claiming the RHI to meet a lifecycle greenhouse gas (GHG) emissions target of 60% GHG savings against the EU fossil fuel average.

In a nutshell this means that the carbon footprint of a biomass fuel must deliver a substantial carbon saving compared to oil, gas or coal to ensure that biomass retains its 'low carbon' or 'carbon neutral' status.

What does this mean to users and producers of biomass fuels?

The BSL applies to users, producers, self-suppliers and traders of 'woody biomass'.  

For a fuel user in receipt of the RHI (commercial or domestic) they will need to demonstrate to Ofgem that their fuel is from a source recognised by the BSL. 

In turn this means that anyone supplying an RHI accredited biomass boiler will need to be registered on the BSL.  Self-suppliers will also need to be listed on the BSL.  

In addition to BSL accreditation biomass traders/wholesalers will also be listed on a public register.

Effectively any fuel used or supplied to an RHI accredited boiler will need to have BSL accreditation.

Which fuels are included?

• Pellets – virgin
• Pellets – waste
• Pellets – waste virgin blend
• Briquettes – virgin
• Briquettes – waste
• Briquettes – waste virgin blend
• Chip – virgin naturally seasoned
• Chip – virgin force dried
• Chip – waste
• Chip – waste virgin blend
• Firewood – virgin naturally seasoned
• Firewood – virgin force dried
• Firewood – waste
• Firewood – waste virgin blend

What are the requirements?

All applicants must agree to the scheme terms and conditions, which include requirements around reporting, agreement to be subject to periodic audits, and the provision of proofs of purchase in the form of invoices or receipts with information about the fuel on them.

How do I apply?

The application process is completed online at the new BSL portal.

For users and self-suppliers the process is relatively simple.  After selecting the a supplier type applicants are required to respond to a set of questions (which vary according to the supplier type).

Self-suppliers, for example, are required to sign a declaration and upload a copy of a Forestry Commission approved management plan.

For traders and producers the process is a little more complicated and may require the completion and uploading of product data and carbon footprint calculations (via the B2C2 carbon calculator).

All applicants need to accept a set of terms and conditions that confirm acceptance of the scheme rules and which enables the BSL to undertake ongoing checks or audits.

The BSL FAQ is a good place to start.  Application guidance is also available on the BSL portal.

Overall we feel that the BSL is an appropriate method for accrediting and monitoring biomass fuels that are being used in publicly-funded biomass boilers.  

The BSL may initially appear to be bureaucratic but we are confident that most people will get to grips with it fairly easily.

New biomass sustainability requirements for the Renewable Heat Incentive

Ofgem has revealed more detail on how it intends to roll out and implement sustainability requirements for biomass fuels.

This is particularly important as it not only affects the owners and operators of RHI accredited biomass boilers but also producers and traders of biomass fuels.

The guidance applies to both the non-domestic (commercial) and domestic RHI and participants will need to comply with requirements from date they come into force (although the precise dates are not stated).

All participants are strongly encouraged to start sourcing from a supplier on the forthcoming Biomass Suppliers List (BSL) supplier in advance of the criteria coming into force later this year.

The new requirements also take into account participants who self-supply, for example an estate that processes wood chip from its own woodland.  Details on this can be found below.

From Autumn 2014 (no earlier than 1st October 2014)

Biomass fuel used by RHI participants must meet a lifecycle greenhouse gas (GHG) emissions target of 34.8g CO2 equivalent per MJ of heat.

Don't panic!  All this means is that the fuel (chip, logs, pellets) must achieve a 60% GHG saving against the EU fossil fuel average.  And it is the supplier of the fuel that has to demonstrate the GHG saving and not the end user (although the end user will have new reporting responsibilities if they are participating in the RHI).

From Spring 2015 (subject to the Parliamentary process)

Ofgem plans for biomass fuel to meet land criteria, which will differ for different types of biomass:

For woodfuel the criteria are outlined in the UK Timber Standard for Heat and Electricity.

How do non-domestic RHI participants comply?

This is rather simple actually.  A new Biomass Suppliers List (BSL) is currently being set up.  This is being managed by the good people at Woodsure who have been appointed by Ofgem to manage the BSL.  The alternative option is to self-report directly to Ofgem.

Participants can switch between these methods.  Of the two the BSL route sounds more straightforward to us.

• Sourcing woodfuel from the Biomass Suppliers List (BSL)
• Participants may still need to also provide Ofgem with a quarterly declaration that the biomass fuel they have used was sourced from a supplier registered on the BSL and marked as sustainable.

• Self-reporting to Ofgem on the sustainability of their fuel
• This will involve making a quarterly declaration to Ofgem of the lifecycle GHG emissions associated with each consignment of fuel used in that quarter, and provide an annual independent audit of the lifecycle GHG emissions associated with biomass used in that reporting year.

For the domestic RHI all fuel used from the date the criteria come into force must be sourced from a supplier registered on the BSL at the time the fuel was purchased. Participants are required to make an annual declaration to Ofgem that the biomass fuel used meets this requirement.

Self-suppliers (domestic and non-domestic) < 1 MW

Participants self-supplying woodfuel from the same estate as the installation will be able to register on the BSL as a self-supplier without undertaking an assessment against the sustainability criteria if the boiler is less than 1MW capacity. 

Ofgem recommendeds:

• Self-suppliers provide some evidence of their ability to self-supply, such as a Forestry Commission approved management plan. 
• Self-suppliers should register on the BSL before the sustainability criteria come into force in Autumn 2014.

Self-supplying participants who cannot meet all of their needs from their own woodland will be able to top up with fuel purchased from a BSL supplier.

Commercial RHI - summary of changes to tariffs and technologies

Are you sitting comfortably?

DECC has been busy releasing new and updated information about both the commercial and domestic RHI and renewable heat in general.

To my eyes the overall renewable heat situation looks extremely healthy at the moment, particularly if you are in the biomass sector.  However, it is also clear that biomass is dominating the commercial RHI.  Consequently DECC will introduce changes to the budgetary process to increase the degression trigger sensitivity for sub-1MW biomass.

We have read the latest update on the commercial RHI and have picked out the main points from the executive summary.  We would urge interested readers to look at the entire document in case we have missed anything.


A key change is the capping of all tariffs at 10p/kWh.  This means that the RPI inflation of tariffs will stop at 10p/kWh.  For biomass it is the tier 1 small biomass tariff that is closest to this limit (n.b. the solar thermal tariff will be increased to 10p/kWh).

It is true that some renewable heat technologies are underperforming in the RHI, such as heat pumps and solar thermal.  However, DECC has recognised this and will beef up support - via increased tariffs and budgets - as well altering some requirements (such as energy efficiency).  The large biomass tariff, for example, will increase to 2.0p/kWh from 1.0p/kWh.



Eligibility

For new technologies and updated tariffs - 4 Dec 2013.  Any applications with a date of accreditation of 21 January 2013 or later will benefit from the tariff increases brought forward as a result of the Early Tariff Review consultation (this applies to ground source heat pumps (GSHP), solar thermal and biomass over 1MWth).


Energy Efficiency

DECC will not be introducing explicit energy efficiency criteria for non-domestic RHI applicants at this time. The mixed views from consultation respondents made it clear that more work needs to be done to establish a range of effective but not unduly burdensome energy efficiency measures that could be introduced into the scheme.


Biomass Sustainability Update

Based on feedback from stakeholders about industry readiness,  DECC  will postpone implementing mandatory compliance with GHG lifecycle emissions savings to Autumn 2014, so that industry and participants can monitor their processes in light of the sustainability criteria and build the audit trail necessary to demonstrate compliance.

DECC intend for the Biomass Suppliers List to be open for applications from suppliers of biomass in Spring 2014.

Subject to the availability of Parliamentary time,  DECC  intend to implement land-use sustainability criteria by 1 April 2015.


Biomass CHP

DECC will be introducing support for biomass CHP (4.1p/kWh), biogas >200kW (5.9 p/kWh and 2.2pkWh depending on size) and deep geothermal (5.0p/kWh). 

However, we do not intend to proceed at this time with support for heating only air-to-air heat pumps or biomass direct air as the consultation did not enable the development of appropriate deliverable policy.

Biogas combusion >200kWth

Subject to State Aid approval, tariffs will be set at 5.9p/kWh for installations with a thermal capacity of between 200 to 600kWth and 2.2p/kWh for those greater than 600kWth.

Deep geothermal

DECC will introduce a new tariff for deep geothermal heat at 5p/kWh. Deep geothermal heat will be defined as heat coming from a drilling depth of a minimum of 500m.

Heating only air-to-air heat pumps (AAHPs)

Although these technologies do produce renewable heat,  DECC  will not be introducing support for them at this time. This is primarily because of the risk of incentivising the installation of separate heating and cooling AAHPs in order to claim the RHI, rather than a reversible AAHP, which is likely to be more energy efficient.

Air to Water Heat Pumps and Energy from Waste

DECC will be introducing support set at 2.5p/kWh for AWHP (designed to achieve a minimum seasonal performance factor of at least 2.5) and 2.0p/kWh for the biogenic proportion of energy from waste (commercial and industrial).

Value for Money Cap and Tariff Rate of Return

From Spring 2014 tariffs across the RHI will be capped at 10.0p/kWh of renewable heat (and continue to be adjusted by RPI annually).

Biomass

To date deployment of large biomass has been below expectations and therefore  DECC  will go ahead with the proposed tariff increase to 2.0p/kWh.

Ground Source Heat Pump Tariffs

DECC will be replacing the current banded GSHP tariffs with a single tariff of 7.2p/kWh, which will be tiered.

The tier 1 tariff of 8.7p/kWh will be paid on the initial heat generated for an eligible purpose and the tier 2 tariff of 2.6p/kWh will be paid on the remaining eligible heat generated. This is equivalent to a tariff of 10.0p/kWh renewable heat assuming an SPF of 3.6.

Solar thermal

DECC will be raising the solar thermal tariff to 10.0p/kWh.

Budget management

Since implementation,  DECC  has made three quarterly degression assessments, one of which resulted in the medium biomass tariff being reduced by 5%. The outcome of the most recent assessment was published at the end of November.  DECC  will publish the fourth quarterly announcement by 1 March 2014.

In the May 2013 tariff review consultation we set out that the budget management policy would need to be developed in light of any tariff changes or scheme extensions and to reflect the outcome of the spending review for 2015/16, which has since confirmed an RHI budget in 2015/16 of up to £430m.

Having reviewed the budget management mechanism to ensure it remains fit for purpose,  DECC  will make some changes to the policy from Spring 2014 to:

• base the deployment levels set out in the degression mechanism on refreshed market intelligence rather than the expectations that were modelled prior to the scheme’s introduction;
• reduce the tolerance in the technology trigger for biomass under 1MWth and bio-methane injection by reducing the amount that these triggers are scaled above expected levels of deployment. They will change from being 150% of expected deployment to 120% of expected deployment. This will reduce the risk of unsustainable growth and dominance of the budget by a small number of technologies;
• set the triggers for technologies  DECC  expects to deploy in relatively lower volumes (solar thermal, deep geothermal and all biogas) at 2.5% of the overall budget, rather than the current 5%.

Reducing uncertainty for projects with long-lead times

DECC intend to introduce a form of tariff guarantee for the largest installations (for example, those over 1MW), initially available for plant due to be commissioned by 31 March 2016. Subject to further policy development in 2014, State Aid and Parliamentary approval,  DECC  will aim for this measure to be in place from April 2015 to March 2016 and thereafter factored into the next spending review discussions on the RHI so that it can be available from Spring 2016 for plant due to commission by 31 March 2020.

Public Grants

After two years of the non-domestic RHI we think a more flexible approach to the interaction between public grants and the RHI could encourage more renewable heat installations to come forward. Pending further work alongside the 2014 review to look at the interaction between public grants and the non-domestic RHI,  DECC  intend to introduce some additional flexibility next year. We will take forward regulatory amendments to extend the eligibility window for repayment of grants and to allow some grant recipients who are unable to pay back their grants to access the RHI via reduced tariff payments.

Renewable Heat Incentive - safe from degression (for the time being)

Following the most recent check on uptake Ofgem has announced that the commercial RHI tariffs will remain unchanged.

This was the first serious 'degression test' for the commercial RHI. DECC's figures show that both the small and medium commercial biomass tariffs had exceeded their degression trigger points:

• Small commercial biomass: Forecast spend over the next 12 months is £32.3m. This is £4.3m over its individual technology trigger.

• Medium commercial biomass: Forecast spend over the next 12 months for is £26.5m. This is £0.2m over its individual technology trigger.

However, because spend for all other tariff categories were considerably below their individual tariff thresholds for this quarter, and overall spend was within budget, Ofgem has decided to leave all tariffs unchanged.

Commercial RHI - total spend (Nov 14 2013)

Total forecast expenditure for the scheme (as of October 31st) was £70.3 million. 

As the £70.3m figure does not exceed either threshold (see below) the scheme has been left unchanged:

• The “50% trigger” for the scheme as a whole as at 31 October is £71.6m.

• The “100% trigger" for the scheme as a whole as at 31 October is £143.3m.

Biomass heating is clearly the biggest 'winner' from the commercial RHI. In contrast to the feed-in-tariff (FiT) for renewable electricity, which grew exponentially, RHI growth has been far more linear (and thus more predictable).


But as you can see the commercial RHI was very close to its degression trigger in October - for some tariffs - and we suspect that things may get even tighter in the near future.

Uptake of commercial RHI Source: KDAONB

The forecast spend for the small commercial biomass tariff means that it is already above its next quarters individual technology trigger (£30.9m on January 31st 2014).

This means that there is enhanced risk of degression in this tariff.  However, this would only occur if next quarter’s 50% trigger for overall expenditure of £83.2m was also exceeded.

RPI (%) Source: ONS

The good news is that the scheme overall is nearing its third 'inflation point' on April 1st 2014.  

The commercial RHI tariffs have already been increased by the Retail Prices Index (RPI) twice (4.8% in 2012, 3.1% in 2013) and the increase may help offset degression  if it happens.

However, the latest figures from the ONS show that the RPI is falling so the cushioning effect may not be so marked in April '14.

Biomass at Hever Castle - Nextgen Study Tour

Nextgen's current study tour programme include a visit to the biomass heating installation at Hever Castle in Kent.  The tour will take place on Wednesday November 6th.

We have visited the installation already and it is well worth seeing - a very impressive boiler room with a purpose built wood chip shed with a large storage yard.  This is certainly a masterclass in how to get biomass right and how self-supply wood chip can add enormous coherence to estate-level woodland management.

The details of the tour, from the Nextgen website, are as follows:


The stunning Hever Castle in Kent, once the childhood home to Anne Boleyn, is opening its  historic doors to delegates to show you how this iconic 13th century building is utilising its resources to generate sustainable heating solutions from biomass.

With rising fuel prices, the cost of heating buildings is a considerable challenge.  For owners of rural buildings and infrastructure, Biomass boilers offer a significant reduction in these costs.

This study tour will show you:

• How best to achieve heating cost reductions of up to 80%
• How to successfully apply for the Renewable Heat Incentive, to pay off your capital costs and deliver future profits
• How to manage a biomass boiler system efficiently over the long term
• How to ensure secure sustainable supplies for the lifetime of your boiler system
• How to reduce your carbon footprint and boost the local economy

Hear from some of Britain’s foremost experts in Biomass installation and business planning, sourcing sustainable wood supply and RHI applications

Agenda for the day:

• 09.45: Registration, tea & coffee
• 10.00: Welcome and overview of the day’s agenda
• 10.15: Overview of the Biomass and heating network project at Hever Castle: Duncan Leslie, CEO at Hever Castle 
• 10.45: The business case for Biomass / DH in local, rural settings: Toby Douch, Douch Biomass
• 11.15-11:30: Break
• 11.30: A sleeping giant? The UK capacity for biomass - Sourcing and maintaining feedstock supplies: Stewart Boyle, Consultant to South East Wood Fuels 
• 12.00: Getting your RHI application right first time: Speaker tbc, Ofgem
• 12.30: The devil is in the detail: planning and permissions and plant design: Matt Scully, Rural Energy 
• 13.00-13.45: Lunch
• 14.00-16.30: Site visits

Bookings can be made here.

This Tour is in association with Douch Biomass & Rural Energy 

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.

RHI - consultation on change to heat metering requirements

Welcome to our first blog post of 2013.  

In the spirit of 2012 we will commence the year with yet another consultation on the RHI!

Whilst this latest consultation is fairly straightforward it will have important implications for installers, particularly those that have been preparing their own IRMAs (Independent Report on Metering Arrangements).

Also, as the proposals are likely to incur additional costs for both installers and consulting engineers looking to provide IRMAs it may well be worth taking a few minutes to read the consultation and send your feedback to Ofgem.

Ofgem's current guidance on metering can be found here.

The consultation has been prompted by the apparent low quality of IRMAs received by Ofgem to date:

• Early site audits of RHI applications revealed a high level of errors in metering arrangements, particularly in the location or installation of meters.
• Many of these errors would impact on the accuracy of heat generation data but had not been identified in the IRMAs submitted.
• IRMAs received to date are often inconsistent with other documentation or show poor understanding of the RHI eligibility requirements. As a result, Ofgem has been unable to rely on IRMAs to verify the eligibility of metering solutions, thus considerably reducing their value to applicants and Ofgem.
• Overall the errors found in IRMAs to date are felt to be indicative of two main issues: inadequate levels of independence and inadequate levels of scheme and technical knowledge.

In response to these challenges Ofgem is now consulting on six proposals:

Proposal 1:

The applicant will need to stipulate that ‘the IRMA author must have no contractual or other relationship (beyond any contractual arrangement to produce an IRMA) with the metering installer, the applicant or the system designer’.

Proposal 2: 

RHI applicants will need to verify the eligibility and competence of their IRMA author by asking the author to confirm a series of statements within the RHI IRMA report template:

• The author has read and is familiar with the RHI Guidance documents and RHI Scheme Regulations 2011, in particular the metering requirements;
• The author is able to detect meters which have been fitted and/or located incorrectly alongside any other defects or system configurations which could adversely affect the meter‟s ability to accurately measure heat production;
• The author is familiar with the metering requirements of the MID Annex 1 and is able to determine whether or not a meter is compliant with MID Class 2 metering requirements;
• The author understands the difference between „simple‟ and „complex‟ metering arrangements as specified in the RHI Guidance documents and is able to determine which of these arrangements applies to the applicant‟s circumstances; and
• The author is able to determine whether or not a schematic diagram accurately reflects (in sufficient detail) the applicant‟s physical installation and heating systems.

Proposal 3:

For further clarity, the following additional changes be made to the RHI IRMA report template:

• questions in the report template will be made more explicit;
• questions relating to external pipe work and additional buildings will be included;
• a higher level of evidence for compliance will be set including the provision of photographs;
• additional questions will be included on the evidence of MID Class 2 accuracy of meters;
• to support the questions on evidence of meter accuracy and meter conformity, specific evidence (in the form of document copies and/or photographs) must be appended to the template. For example, this can include photocopies and photographs to confirm MID Class 2 accuracy. This will be in line with the evidence requirements set out in our published „RHI Frequently Asked Questions – Metering‟7; and
• inclusion of the following additional declaration which the IRMA author must sign to confirm that the installation has met the RHI eligibility criteria (see here for guidance).

Proposal 4:

To recommend that all IRMA authors undergo assessment to increase their technical and scheme knowledge via a recognised assessment programme.  Ofgem suggests that such assessment programmes are in development (e.g. via The Building and Engineering Services Association (B&ES), Building Services Research and Information Association (BSRIA), Chartered Institute of Building Services Engineers (CIBSE) and Energy Services and Technology Association (ESTA).

Proposal 5: 

That all meters be robust against tampering.

Proposal 6: 

The sharing information on the quality of IRMAs with the IRMA authors themselves and with their assessment, trade or professional body, in order that those bodies are able to address any issues and provide the appropriate protection to the public.

The consultation letter can be found on the Ofgem website using the following link:

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=47&refer=e-serve/RHI

The consultation extends for 8 weeks with responses due by the end date of 4th March 2013.

RHI update and summary of changes to RHI Register

This post provides an update on the RHI and summarises the recent changes made by Ofgem to some of the RHI application questions.

Progress update

Overall the number of biomass RHI applications has risen from 276 on September 25th to 585 on December 11th.  

Source: Ofgem public report - Dec 11, 2012

Source: Ofgem public report - Dec 11, 2012

This is a significant increase and indicates that the scheme is beginning to make progress.  

However, this scheme overall is still far behind the original forecasts and around £30-35m will be returned to the Treasury at the end of March.

Meanwhile, the consultation on the domestic version of the RHI closed on December 7th, the results from which  are due in March 2013.  More details, including the recent consultation addendum relating to a subsidy cap and its impact on heat pump tariffs, can be found here.

Application changes

With regards to the changes to the application questions Ofgem points out the following:

• No extra information is necessary with the update to these questions.
• The requirements are the same as before, questions have been reworded to improve the quality of RHI applications made, and ensure the application questions assist applicants understand what is required first time, both in terms of question responses and document uploads.

The following questions have been updated  - the changes are in brackets:

• HD170, (Please select the type of premises in which heat from the installation (for which you are applying) is used. Please upload evidence of non-single domestic status at the document uploads at the end of the application (eg Non-Domestic (Business) Rates bill, multiple Council Tax bills or equivalent / similar evidence))

• HG150, (Will the installation use any of the following fossil fuel-derived fuels: You can select more than one answer for this question)

• HI150, (Please provide a meter reading for this meter. If this is not your first submission of this application then please do not change this meter reading unless agreed with Ofgem. This reading may need to be updated if, for example, you have made changes to metering requiring new readings, or your installation, heating system or application information has undergone significant amendments.)

• HI151a-1/HI151B-2 etc, (Please provide the date on which this reading was taken (this should be no more than three days before the date on which the application is first submitted to Ofgem).

• HK110, (Please enter the serial number of your installation. E.g. for boilers you will find this on the boiler name plate. Please upload a photo of your boiler name plate AND a copy of your invoice showing the date of purchase and model of your heat generating equipment (at the document uploads at the end of the application), OR a copy of your commissioning certificate showing model, capacity and commissioning date.)

• HK120, (Please provide a comprehensive description of your installation, including the make & model of the main components. For further details of the information that should be included here, please refer to guidance and available applicant information.)

• HL99, (Please confirm if you wish to Upload or Post the documents as supporting evidence? Please note that uploading documents is likely to mean the accreditation process is quicker.You must however always send bank and ID information under separate cover by post as instructed. Please do not change this setting to “post” if you have previously selected “upload”. Contact the enquiry line if you have any problems, and please see the IT system user guide for help on creating and uploading PDFs.)

• HL170, (Please provide a comprehensive schematic or diagram of the heating system of which your installation forms part. This must include the following: 
• All plants providing heat to the heating system, whether eligible or ineligible 
• All uses supplied with heat from the heating system, both eligible and ineligible 
• The pipework connections between all plants and heat uses, including clear indication of any pipework not located within a building 
• The positions of relevant hot water and steam meters and their associated components.(e.g. both temperature sensors, flow meter and integrator). 
• Please ensure that all of the items listed above are clearly labelled, that the schematic has a key, and that building boundaries are indicated.)

The application register can be found here and the application guidance here.

Domestic RHI proposals announced

In keeping with the cautious nature of UK energy policy-making DECC has launched three new RHI consultations - a domestic RHI, expansion of the non-domestic RHI and introduction of renewable heat tariffs for air-to-water and energy-from-waste.

Of these the long awaited domestic RHI is of considerable interest to the biomass heating sector. It provides some clarity on the final scheme that should emerge during summer 2013 and is essential reading for consumers and installers alike.

Proposed domestic RHI timeline

This article aims to highlight the main points of the domestic RHI proposals in relation to biomass heating technologies.  It also provides links the consultation documents and summaries from other commentators which may help to provide a more rounded picture.

Lets start with the DECC introduction which provides a succinct summary of the 116 page document:

The consultation on proposals for a domestic scheme sets out  proposals for longer term support to householders who install renewable heating kit such as biomass boilers, air (to water) and ground source heat pumps and solar thermal into homes.

The RHI for householders is aimed at any householder looking to replace their current heating with renewable heating kit or householders who have installed any such technology since 15 July 2009 (n.b. whether or not these installations will be eligible for  support will be decided decided upon as a result of this consultation).

The more detailed introduction to the consultation goes a bit further:

• The scheme is aimed at helping households replace their existing fossil fuel-based heating systems with renewable-based ones (<45 kWh/thermal).
• Support is proposed for the installation of Microgeneration Certification Scheme (or equivalent) certified ground and air source heat pumps, biomass boilers and solar thermal panels.
• The subsidy would be provided through tariff based payments over a seven year period.
• Payments would be made on the basis of deemed amount of renewable heat generated with the rate paid varying according to the type of renewable technology installed.
• The tariffs take into account the additional costs of installation and running the renewable system and non-financial barriers (such as disruption in the home). They also build in compensation on the additional upfront installation costs of 7.5% to cover the cost of financing.
• The scheme will be for individual domestic properties and is open to all.
• Provided that properties meet certain energy efficiency criteria (meaning a key interaction with the Green Deal), owner-occupiers and private landlords would be eligible, together with householders who have installed renewable heating systems since 15 July 2009, including those who received the Renewable Heat Premium Payment (RHPP).
• There is consideration of bespoke tariffs for the registered social landlord and new build sectors, recognising their potential contribution to the roll-out of renewable heat, but taking into account the possible lower installation-related and other costs they might benefit from.

The devil, as they say, is in the detail and a more thorough read through is required to reveal the finer points. The main items of interest, as far as we are concerned and again relating primarily to biomass, are below. Don't forget that these are only proposals at this stage and the final result will depend on the feedback to the consultation:

• The basic idea behind for a domestic RHI is that it is a boiler replacement scheme: It is designed to encourage those who would be looking to change their current fossil fuel boiler due to age and/or loss of efficiency.
• The tariff could be paid over a timescale shorter than 20 years (e.g. 7 years) to appeal to consumers who plan and budget in a shorter time frame.
• Tariff levels are set to be more financially advantageous to those homes off the gas grid, although the scheme will be open to any home in the UK.  However, the policy could be restricted to just those off the gas grid or focused at particular geographic areas.

Proposed domestic RHI tariff

• Second homes are excluded from the scheme.
• It is proposed that installations in rented properties be eligible for the RHI with the landlord as the recipient (providing the landlord is the owner of the heating system).
• Consumers who installed renewable heat installations since 15 July 2009 will be eligible to apply for the domestic RHI provided they:

• Have installed an eligible technology.

• Meet the eligibility criteria on energy efficiency.

• Declare any government funding or support already received for the installation of renewable heat.

• Do not have a back up fossil fuel heating system, or if they do, are prepared or have installed a heat usage meter on which the RHI payments can be based.

• Meet all current MCS standards.

• Where these legacy applicants meet the eligibility criteria, any government funding already received will be subtracted from the amount of RHI payable to the householder and will be reflected in the payments received. A phased application process for legacy installations may be used to help manage applications.
• Biomass-only boilers and biomass pellet stoves with back boilers will be eligible for the RHI provided they meet 99% of the peak space heating load of the property using the calculation methodologies in MCS.
• Fuel sustainability criteria used for the non-domestic RHI will also apply to the domestic scheme.  This would entail consumers purchasing fuel from an approved supplier list.
• As with biomass sustainability, the domestic RHI scheme takes the same approach regarding emissions limits and the tests to assess compliance as that set out in the recent consultation on the non-domestic scheme.
• It is proposed that only biomass appliances that are on the HETAS approved list will be eligible for the RHI.
• Stoves with back boilers (log or chip), room heater stoves and condensing biomass boilers and stoves are excluded from the scheme.
• Individual homes would be eligible to apply only once during the lifetime of the scheme. In line with this, domestic RHI payments would be calculated on the assumption of one eligible technology meeting the deemed total space heating (not hot water) demand of the property.
• The installation of multiple eligible renewable technologies under the domestic RHI be restricted to solar thermal in combination only (e.g. solar thermal and biomass).
• In order to receive the domestic RHI, consumers would be required to have completed all 'green ticks' on their Green Deal assessment that relate to the thermal efficiency of the house.

Example of Green Deal 'green ticks'

• The domestic RHI will be paid on the basis of ‘deemed’ heat with metering being only required for certain situations.  Deemed heat is the estimated annual heat load which would be obtained via an existing accepted measurement process (most likely SAP).
• In the majority of cases consumers would be required to remove their existing fossil fuel heating systems in order to be eligible for the RHI.
• For biomass boilers bivalent systems (i.e. biomass plus fossil fuel system) would not be allowed, except for electric immersion heaters for hot water and solar thermal, due to the risks involved around the consumer switching back after 7 years.
• For legacy applicants we are proposing to allow bivalent systems if they have been installed and the heat load will be calculated based on metered readings.

• Where pre-existing fossil fuel Rayburn range cookers are in place, we propose that these need not be removed but that the range cooker should be disconnected from the heating pipes and boiler, allowing the householder to continue to use the cooking facilities. These systems would not be taken into account in ensuring that the renewable system covers 100% of the heat load.

• Where pre-existing Aga range cookers are in place, for safety reasons we propose that these could remain connected to the boiler but they should be disconnected from the radiators.

The consultation document can be found on the DECC website.  The deadline for responses is December 12th.

Links

Here is a selection of early commentary on the consultation that may be of use in forming an overall opinion of what is being proposed:

Business Green
Greenwise Business
Guardian

RHI: 100th accredited application

The 100th installation was accredited to the Renewable Heat Incentive (RHI) scheme on 19th June 2012.

The Meikleour Trust, a Scottish estate, installed a 500kWth biomass boiler to supply heat via a district heating system to a range of buildings including the main house, a greenhouse, holiday lets and other outbuildings. 

The owner also intends to expand the system to a planned housing development in the future. The fuel is local wood chip that is sourced from sustainable local forestry.

The most recent RHI quarterly report from Ofgem shows a high uptake of solid biomass installations which make up 99% of capacity and 90% of total accreditations under the scheme.

Chart 1 shows the total installed capacity accredited by the scheme since November 2011. As of 30 June 2012, a total of 49.41 MW of installed capacity had been accredited to the scheme.

Heat pumps (ground and water combined) make up 8% of accredited installations and 0.75% of capacity. 

Biogas and solar thermal technologies each account for 1% of the total number of accredited installations as well as 0.24% and 0.01% of accredited capacity respectively.

A total of 121 renewable heat installations have

been accredited under the scheme, seven of which

are preliminary accreditations.

• Only four applications have been rejected, all because applicants had received public funds or grants.
• 49.41 MW of total capacity has been accredited, 11.36 MW of which is preliminary.
• A total of £350,594 in RHI periodic payments has been made to participants.

The number of accredited installations for the second quarter increased from 20 at the end of March to 121 installations accredited by the end of June.

Solid biomass installations continues to make up the majority of accredited installations and accredited capacity.

Installed capacity has increased to 49.41 MW from 5.25 MW. The amount of periodic payments made to participants has increased from £9,707 to £350,594.