Renewable Heat Incentive announced for non domestic buildings

RHI UPDATE – 25 NOVEMBER 2011

The Renewable Heat Incentive (RHI) for non-domestic generators will open for applications on Monday 28 November 2011.

The start of the scheme follows a short delay while DECC resolved the scheme’s compatibility with EU state aid rules and re-submitted the draft regulations to Parliament. Organisations will be able to apply to Ofgem for support under the scheme from Monday 28 November and will receive payments on a quarterly basis for heat generated over 20 years.

Applications can be made by the owner through Ofgem

For installations less than 200 kW the payment for biomass (wood pellets, wood chip, logs, miscanthus etc) will be 7.9p per kWh of metered heat below 1314 hours and 2p per kWh of metered heat above 1314 hours.

For instance for a 50 kW boiler using 1314 hours over 1 year would gain a little over £5000 per annum for 20 years.

For information on how you may be able to benefit from these payments please contact us.


Wood Pellets and Solar Thermal?

Do wood pellets and solar thermal work well together as a combination?

The simple answer is “yes” with the home owner taking advantage from both the sun and wood pellets or logs.

The disadvantages are that you have to pay for 2 pieces of heating equipment and for 2 installations. However there are plenty of bonuses.

1 The non domestic Renewable Heat Incentive

(for organisations and district heating)

The non domestic RHI will pay out 7.9p per kWh for small scale biomass and 8.5p per kWh for solar thermal.

The rates being slightly favourable for solar mean that each kW you heat using solar is more beneficial for your heating bills and your incentive tariff from hte government will be  a little higher.

2 The domestic Renewable Heat Incentive

Whilst tariffs are not yet decided it is expected to be similar in parity to the non domestic RHI.

3 During the summer

During the summer it is likely that solar can be the only form of heating/producer of hot water. This means no bills.

4 During the winter

During the winter solar takes the edge off your bills according to how sunny it is.

5 No struggling with heating

Solar can struggle to provide heating. Biomass wood pellets have few limitations in terms of “how much” heat you need.

Both solar and wood pellets provide cheaper fuel. The RHI does pay for the installations. With the non domestic RHI starting at the end of November applications can be made directly to Ofgem for these sorts of combinations.

How much is the non domestic RHI worth for wood pellets and solar?

@ 20,000 kWhs per year (small b&b and 15 kW boiler) – £32,000 over 20 years

@ 30,000 kWhs per year (small public house 23 kW boiler) – £48,000 over 20 years

@ 40,000 kWhs per year (Small office block 30 kW boiler) – £64,000 over 20 years

@ 50,000 kWhs per year (small hotel 38 kW boiler) – £80,000 over 20 years

@ 60,000 kWhs per year (3 homes in a district heating system 45 kW boiler) – £96,000 over 20 years

@ 80,000 kWhs per year (A museum) – £102,000 over 20 years

The RHI will pay for the equipment and installation. You also get the considerable benefit of “no more fossil fuel”.

Price watch on fossil fuels November 2011

Gas prices for Wiltshire are 8.850p for Tier 1 and 4.132p thereafter. This equates to about 4.7p per kWh for the average house.

Oil was 60p a litre or 6p per kWh

Both types are more expensive than Wood pellets at £190 per tonne or 4p per kWh.

Locally made solar panels

Green Phoenix make their own solar panels near Royal Wootton Bassett in Wiltshire. High quality and transparent pricing!