[ Spotlight: Renewable Heat Incentive ]
UP T
If you can’t measure it,
you can’t claim it All the useful heat produced by a renewable installation must be measured, and this is the area where there has been plenty of contractor confusion. Heat metering is relatively new to many contractors, though in essence it is very simple. The fl ow of fl uid carrying the heat from the heat source is measured together with the fl ow and return temperatures of the fl uid, and instruments calculate the heat fl ow. Naturally, as the heat metering is used to claim cash from the RHI, it must be to a specifi ed standard, and the RHI demands that heat metering must conform to Measuring Instruments Directive 2004/22/EC (MID) standards. The heat being utilised must be measured, and there are strict guidelines on how and where
he Renewable Heat Incentive (RHI) is an on-going tariff -based payment that encourages the use of renewable heat sources in buildings. The RHI was launched by the government in
November 2011, and is arguably the world’s fi rst long-term programme to support renewable heating in the built environment. It is currently only available for the non-domestic sector, although it is intended to be extended to the residential sector in 2014. The scope of RHI includes biomass boilers (usually wood burning), ground and (soon) air source heat pumps, and solar thermal installations. The RHI applies a two-tiered payment system, and
payments can last for up to 20 years. The fi rst stage of payment (payable per kWh of heat produced) applies up to a tier of 1,314 kWh capacity. The second tier tariff , which is signifi cantly lower, is paid on any heat produced above the fi rst tier level. It is intended that the fi rst tier tariff helps pay for the capital outlay for the system, while the lower, second tier tariff , helps pay for the fuel used for heating. It was designed this way so that it was not profi table to install large systems that were over the capacity actually required but running at full heat output purely to maximise revenue.
As of April 2013, more than 2,000 applications had
been received and 1,300 accreditations for payment approved. Much more is expected of the RHI, but it is now picking up after a desperately slow start in 2012. However, a large proportion of the applications have been referred back to the applicant for further information or clarifi cation, which has signifi cantly aff ected the time taken to obtain the tariff .
It has been decided that the RHI will be extended to the domestic sector from the summer of 2014
the necessary meters are installed. These, and how to apply, are in the RHI Guidance Volumes 1 and 2 documents, available from the Ofgem website (www.
ofgem.gov.uk). In addition, as part of the application process, the applicant must obtain an ‘independent heat metering report’ from an accredited consultant. This consultant inspects the metering arrangements to ensure that it complies with the requirements. The recent consultation has resulted in the simplifi cation of the metering requirements, but the fundamental principles remain the same. Independent audits have been carried out,
post installation, to ensure that the process is being applied correctly. These have already found some discrepancies in operation. Yet, despite these precautions, heat metering is the single largest cause of failed RHI applications. Ofgem, the body in charge of the RHI, can point to examples of meters being installed upside down, fl ow meters installed the wrong way round and installed in areas of the pipework unsuitable for the linear fl ow required by the meter. If you aim to install a system that is eligible for the RHI, it cannot be stressed enough that the heat metering has to be correct.
Changes Further consultations have taken place and changes to the RHI scheme made. In order not to overspend on budgets, a tariff review will be undertaken on a quarterly basis against a series of triggers. Monthly
RHI and the Green Deal
By Paul Reeve, ECA head of Business Policy and Practice When an RHI-eligible renewable technology (such as solar thermal) is discussed with a customer, the reduced energy bill (due to the solar heat generated) is estimated and the amount of repayable Green Deal loan must not exceed that sum over a given period (the Green Deal ‘golden rule’). So, if monthly savings from a renewables installation are £30, that is the allowable monthly Green Deal loan repayment. These energy bill savings will not cover an entire solar thermal install loan under the Green Deal, so it seems that the customer will need to put in, say, 60 per cent of the capital themselves – their reduced bill savings will cover the remaining 39 per cent or less of the cost of the install, which can be covered by a Green Deal loan. In short, the customer will not be able to get a Green Deal loan
to cover the full cost of installing solar thermal or other RHI-eligible renewables (the reduced energy bill won’t meet the required Green Deal loan repayments), but a Green Deal loan could be obtained to cover about a third of the initial cost, based on the expected energy savings. But then, having eff ectively got a part loan for the install, the customer can also receive an RHI payment – but this payment is not factored in when referring to the Green Deal golden rule. Contractors seeking to install RHI-eligible renewable heat
technologies must be certifi ed under the Microgeneration Certifi cation Scheme (MCS) or suitable equivalent, for small and medium-sized installations (up to and including 45 kWth). MCS also applies to the microgeneration products being installed.
June 2013 ECA Today 25
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