Presentation given at the CLA's Woodfuel Conference at Doddington Hall on Wednesday 30 October by Tom Beeley, CLA Renewable Energy Adviser.

1. CLA East Woodfuel Event
30th October 2013
The Renewable Heat
Incentive for Biomass
Heating
Tom Beeley,
CLA Renewable Energy Adviser

2. What is the RHI?
• Introduced in November 2011
• Supports use of heat from renewable energy sources -
biomass, GSHP, solar thermal
• Designed to overcome barriers to renewable heating
• Aims to provide a 12% return on investment
• Allocated budget of £860 million
• Quarterly, index linked payments over 20 years based
on metered heat
• Administered by Ofgem

3. RHI Progress to date – July
2013
As of July 2013 there were 1789 accreditations to the
RHI 93% of which were biomass

4. Who is eligible?
• Any eligible system installed since 15th July 2009
• All non domestic buildings can qualify
• Systems heating multiple buildings
• Includes system heating multiple domestic buildings
• Must use liquid or steam as heat delivery medium
• Must not have received a grant
• Applicants must be the owner of the installation
• Installations under 45kWth need to be MCS certified

5. Eligibility in more detail
“Installations serving a single private residential premises
are currently not eligible for the RHI”
Are premises considered “separate and self-contained
premises for Council Tax banding purposes.”? Farm
Offices?
• Renewable Heat Incentive Guidance Volume One:
Eligibility and how to apply http://www.ofgem.gov.uk/eserve/RHI/howtoapply/Documents1/RHI_Guidance_Doc
ument_Vol_One.pdf

6. Eligible uses of heat
Space Heating
Hot Water
in a building
Carrying out a process (not electricity)
Definition Of Building:
“Permanent or long-lasting building or structure of
whatever kind and whether fixed or moveable which,
except for doors and windows is wholly enclosed on all
sides with a roof or ceiling and walls”

7. Biomass Tariffs
Tariff
name
Eligible
technology
Small
biomass
Medium
biomass
Large
biomass
Eligible
sizes
Less than
200 kWth
Solid biomass
including solid
biomass
contained in
municipal solid
waste (incl.
CHP)
Tariff level (p/kWh)
from 01/07/13
8.6
(tier 1)
2.2
(tier 2)
5.0
(tier 1)
200 kWth
and above;
less than
1,000 kWth
1,000 kWth
and above
2.1
(tier 2)
1.0

8. RHI for biomass
Example: Boiler with an output of 150 kWth
• Operates at peak load for 7 hours/day in winter and 3
hours/day in summer i.e. 1825 hours annually
• Total Annual output therefore approx = 150 x 1825hrs
= 273,750 kWth
• Tier 1 Payments: 1314 hrs x 150kW = 197,100 kWth x
8.6p/kWth = £16,950
• Tier 2 Payments: 273,750kWth – 197,100kWth= 76,650
kWth x 2.2p/kWth = £1686
• Total RHI income = £18,636 per year

9. Fuel Cost Savings
Fuel
p/kWh (after
Cost to supply
boiler efficiency) 273,750 kWh
Wood Chip
4.35
£11,908
Oil
6.85
£18,751
Kerosene
6.94
£18,998
LPG
8.08
£22,119
Pellets
6.8
£18,615
Logs
5.2
£14,235

10. Accreditation
• Administered by Ofgem via RHI register
Owner Creates account
Enters information on
heat use, metering
arrangements etc on
system
Provide relevant
supporting
documentation
Ofgem reviews
application
Ofgem requests
additional information for
owner
Owner provides
information as requested
to Ofgem
Ofgem accredits or
rejects application
providing detail of further
ongoing obligations or
reason for rejection
Ongoing obligations
fulfilled and RHI
payments made
quarterly

11. Metering
Every installation requires at least one heat meter
• Definition of “simple” or “complex” determines meter
requirements
• Standards – Heat meter must meet Class 2 Measuring
Instruments Directive (MID)
• Requirements on placement of meters
• Schematic diagram showing meters required
• Complex systems require Independent Report on
Metering Requirements
Extensive guidance available from Ofgem website

12. Metering- Simple or Complex?
Do any of the following apply?
Heat delivered by Steam
CHP
Heat used in more than one
Ineligible heat uses on system building
None apply –
Simple and
only need to
meter heat
generated
Yes one or more apply.
Complex installation need to:
Meter all heat generated by
eligible installation
Total eligible use of heat
Heat generated by all heating
plant on system

13. Ongoing Obligations
• Submission of periodic data
• Maintenance of equipment
• Calibration of meters
• Notification of any major changes to installation or
heating system – including ownership
• Keeping of records
• Annual declaration
• Compliance with any document audit / site inspection
request

14. Changes to the Scheme
• Tariff degression introduced June 2013
• Sustainability criteria for non-waste biomass from April
2014 for new and existing installations
• Air quality standards from 24th September
Proposed changes
• Introducing new technologies
• Minimum Energy Efficiency standards
• Review of tariffs for large scale biomass (and other
technologies) – Tariff to be doubled

15. Tariff degression

16. Tariff Degression calculation
• Tariff degression based on level of deployment
• Looks at overall deployment, technology deployment &
change in rate of deployment
• If triggers points exceeded then tariff reduction will take
place
• Can be applied across the scheme as a whole or to
individual technologies
• So far degression of medium scale biomass only in July

17. Sustainability Criteria
• Sustainability been an area of discussion
• New requirements introduced from April 2014
• Apply to existing and new accreditations
• Fuel will need to be supplied from an accredited
member of Biomass supplier list
• Includes self supply although process will be simplified
• Accreditation process not yet set up so little detail
available

18. Domestic RHI – Key points
• Open for applications in spring 2014 –early application
for existing systems
• Owner-occupiers, Private landlords, Registered
Providers of Social Housing, Self-builders, Third-party
owners of a heating system and owners of systems
installed since 15th July 2009 (legacy applicants) all
included
• MCS certified biomass boilers up to 45kWth
• Minimum energy efficiency requirements will apply
• Payments will be made quarterly in arrears for 7 years,
based on deemed heat usage

19. Domestic RHI -Tariffs
• Biomass tariff has been set at 12.2 p/kWh
• RHI income based on deemed heat demand of your
property from an EPC
• By way of an example, a home with a heat demand of
15,000 kWh per year would receive £1,830 p.a. in
payments if heated with a biomass boiler or £12,810
over the 7 years.
• Renewable Heating Premium Payment (RHPP)
currently available

20. RHI an opportunity for CLA
members
• Best opportunity for those off gas grid
• Index linked income for 20 years
• Reduced fuel costs
• Carbon savings
• Opportunity for landlords with tenanted properties,
businesses and farms
• Opportunity for woodland owners as wood fuel suppliers
• Get in under the non domestic scheme if you can
• Domestic customers to benefit in future