Renewable Heat Incentive

The Renewable Heat Incentive is now open for applications. Non-domestic heat users shall have to comply with the standards set by OFGEM. There are two volumes and around 220 pages covering:

Volume 1. – Eligibility and how to apply

Volume 2. – Ongoing obligations, payments

Click here to download  information about the RHI from the Department of Energy and Climate Change.

Ready to Apply?

Click here for a  ‘Summary of supporting information for Renewable Heat Incentive applicants’

Or if you feel ready…

Click here to register

Are you a domestic user of heat energy?

You are currently not eligible to receive RHI payments yet OFGEM are intending to review this during late 2012. Until then domestic users can gain support from the governments ring fenced £15 million through the Renewable Heat Premium Payment Scheme.

Understanding the Tier 1 and Tier 2 structure for small & medium biomass

The purpose of having the Tier 1 rate is to compensate heat users for the installation and fuel costs. The Tier 2 tariff is slightly lower than the fuel cost giving the the heat user an incentive not to waste heat.

RHI Tariff Rates:

Tariff Name	Eligible Technology	Eligible Sizes	Tariff Rate (pence/kWh)	Tariff Duration (Years)	Support Calculation
Small Biomass	Solid biomass; Municiple Solid Waste (inc. CHP)	Less than 200kWth	Tier 1: 7.9p	20	Metering Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is installed capacity x 1,314 peak load hours, i.e.: kWth x 1,134
			Tier 2: 2.0p
Medium Biomass		200 kWth and above; less than 1000 kWth	Tier 1: 4.9p
			Tier 2: 2.0p
Large Biomass		1000 kWth and above	1p		Metering

Click here to download this table in PDF

Trying to work out your own figures? Download our  RHI CALCULATOR JUNE 2011 V4 to find out the financial implications of installing a biomass boiler alongside the current RHI subsidies.

Example – A Small Business (100kW)

Tier 1 – first 1,314 hours of use

A 100kW wood fuel installation running at 80% efficiency generates 430,000kWh of heat in, say 4,300 hours  in a particular year (if running 50% of the time). Its “Tier Break” can be determined by multiplying 80kW x 1,314 hours = 105,120 kWh.

The business will then receive (at 7.6p/kWh) £7,989.12

Tier 2 covers the remaining hours for the year i.e. 80kW x 2,986 hours

The business will then receive a further (x 1.9p/kWh) £4,538.72

Therefore the 100kW boiler would receive £12,527.84 of RHI payments a year.

Are you eligible?

There are two volumes and around 220 pages covering Vol. 1 ‘Eligibility and how to apply’ and Vol.2 ‘Ongoing obligations, payments’.

There is a lot to take in so here are some of the main points to consider before applying:

1. All boiler systems below 46kW and there installers must be MCS (Microgeneration Certification Scheme) accredited.

2. The boiler must be serviced according to the manufactures recommendations.

3. The boiler must be new at installation.

4. Only boilers that have been installed after the 15th July 2009 can be submitted.

5. You can apply if no grants from public funding have been received for purchasing or installing the installation

6. To gain support boilers have to ‘specifically designed and installed to burn biomass’.

7. Any single heated building must be registered for business use.

8. Heat meters must be fitted in such a way that all system losses are reordered and deducted from the ‘useful heat’ calculations. One meter are sometimes necessary on simple installations.

9. Heat meters must comply with Class 2 accuracy requirements.

10. A backup / peak load fossil fuel boiler can run along side a biomass installation as long as it is metered separately.

11. Contamination limits for solid biomass plants above 45kW – The energy content of the contamination must be 10% or under of all the biomass fuels (contaminated or otherwise) used in each quarter.

12. Boilers below 46kW cannot use any contaminated fuel. Boilers between 46kW and 1MW can use fuel with no more than 10% fossil fuel contamination. There is a payment reduction for boilers above 1MW.