Looking forward…to a greener future

Damian BakerDirector – RenEnergy

The Renewable Heating Incentive Explained

Looking forward…to a greener future

RenEnergy Renewable Heat Incentive

10-May-2012

Presented by

Damian BakerManaging DirectorRenEnergy Limited

Renewable Heat

● It is not like installing PV● The process● The Options● What is eligible

Technologies covered

● Biomass● Heat pumps● Bio methane● Geothermal● Solar Thermal

6© Rob Gwillim 2012

Fuel costs compared

Fuel net cost efficiency final Cost

Electricity 12 p/kWhr 100% 12 p/kWhr

LPG 51p/litre 6.9 p/kWhr 80% 8.6 p/kWhr

Light Fuel oil 64p/litre 6.4 p/kWhr 75% 8.5 p/kWhr

Light Fuel oil 48p/litre 4.8 p/kWhr 75% 6.4 p/kWhr

Kerosene 45p/litre 4.8 p/kWhr 75% 6.4 p/kWhr

Natural gas 4p/kW.h 4.5 p/kWhr 75% 6.0 p/kWhr

Pellets £200/ton 4.2 p/kWhr 85% 5.0 p/kWhr

Wood chip £100/ton 2.9 p/kWhr 85% 3.4 p/kWhr

RHI -4.7 p/kWhr

Logs £50/ton 1.5 p/kWhr 80% 1.8 p/kWhr

Final cost = (net cost) * 100 / efficiency

Biomass Systems

● Wood chip● Wood pellets● Logs● Some wastes● Biogas from AD

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Pyromat Eco For Burning Split Logs

• Often cheap & plentiful in rural areas.• Most log burners require 500mm long

SPLIT logs.• Manual loading, lighting, and de-ashing.• Pressurised systems can operate at

950C.• Boiler efficiencies can be up to 92%. • Approximate annual fuel consumption

for 20kW peak heat load is 7.5 ton.• Costs from free to £100 per tonne;

average £50.• No extra charge for the exercise. • Pick the load up three or four times.

Pyromat Dyn & Pyrot for Burning Wood Chip & pellets

• Logs should be dried in a stack before chipping.

• Bulk density 200 to 350kW.h/m3. Wetter is heavier.

• Boiler loading and ignition is automatic in most modern boilers.

• De-ashing should be automatic.• Emergency cooling coil is a

necessity.• Burn back prevention is a

requirement• Type of fuel stores and location

above or below ground.• Minimum buffer capacity

requirements. • Fuel substitution. Peak demand.

Pyrot 80 to 540kW – Pellet and Wood Chip

The most popular biomass boiler in the VIESSMANN family

● Larger boilers can cope with lower grade pellets.

● Domestic boilers require premium grade pellets. Can be purchased bagged.

● Less complex controls are required – suiting (small) domestic applications.

● Popular in cities, high density and quick deliveries.

● Expensive – 1 ton of 16kg bags £230, bulk £160 to £230 per tonne.

● Approximate annual fuel consumption for 100kW

● peak domestic DHN 38 ton.● Approximate annual fuel consumption for

100kW ● commercial building 20 ton.

Solid biomass fuels - Pellets

● Larger boilers can cope with lower grade pellets.● Domestic boilers require premium grade pellets. Can be purchased

bagged.● Less complex controls are required – suiting (small) domestic

applications. ● Popular in cities, high density and quick deliveries.● Expensive – 1 ton of 16kg bags £230, bulk £160 to £230 per tonne.● Approximate annual fuel consumption for 100kW ● peak domestic DHN 38 ton.● Approximate annual fuel consumption for 100kW ● commercial building 20 ton.

Heat pump systems

From CORGI GSHP Guide

Type Eligible

Air-Air No

Heat reclaim No

Air - water No

Water -Water Yes

Ground to Water Yes

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What is an Eligible Load?

Eligible

Buildings which are enclosed and long lasting.

Inc.: ●Glass houses●Process heat ●Space heating●Water heating

Ineligible●External distribution losses●Heat for generating electricity●Underground heating or the heating of external surfaces●Open air swimming pools●Poly tunnels

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Heat meters

● Heat meters consist of three components

● Flow and return temperature sensors

● Flow meter● Integrator● They are calibrated for a specific

fluid

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Heat Meters for RHI

● All meters must have class 2 accuracy● Be installed in accordance with

manufacturers recommendations.

Three different types● Impellor (not recommended)● Ultrasonic● Oscillating flow● Systems are split into simple and

complex● A simple system will have one eligible

source feeding a single building and only require a meter on the output of the source.

(OFGEM, 2011)

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Complex systems

May have one or more of the following features:

●Multiple buildings

●Multiple eligible or non eligible loads

●Multiple eligible and non eligible sources

(OFGEM, 2011)

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● Will require a report on the metering to be prepared by a competent person

● This can be the installing company

● But not one which has a financial interest in the system performance

(OFGEM, 2011)

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Eligibility Requirements (RHI)

• able to qualify as an eligible commercial process or heating system

• new at time of installation (for the whole of the plant room)

• used in one location during its lifetime (it may not be relocated)

• using liquid or steam as heat delivery medium (not hot air)

• installed and commissioned after 15th July 2009

• installed by an MCS accredited installer for systems up to 45kW

• financed without grants or public funding for purchasing or installing the installation [a grant received prior to 30th Sept 2011 must be paid back]

• able to provide quarterly reporting for all biomass boilers >=1MW.

• Maintained.

To qualify for the RHI your installation must be…

Renewable step by step

For any renewable heating solution the key points are:

• Is a renewable heating/hot water solution suitable for my requirement (existing or new)?

• Do I know my current heating and hot water requirements in detail?

• Would I consider a Bivalent system?

• Have I considered the buffer and storage requirements?

• Am I in a restricted area (eg Smoke control, conservation area)?

• How interactive I want to be with my heating system?

• Do I need to build another building allocated for the plant room?

• Have I explored the capital cost/payback opportunities with RHI?

Suitable installation

New build and retrofit. Where to start?

It is essential to carry out a feasibility study in the early stages of the project.

Key considerations:

Solar Thermal Heat Pump Biomass• Roof orientation • Ground source area • Space for storage and plant

room

• Space for cylinder / plant room

• Ground condition (water/water)

• Delivery access

• Pipe runs through building • Emitters type • Supply scheme

• Restricted area • Plant room location • Restricted area

• Planning permission • DHW demand • Planning permission

• Existing building (integration with renewables sources)

• Planning permission • Existing building (integration with renewables sources)

• Existing building (integration with renewables sources)

Identifying the Heating requirement

What is the heat loss?

Conduction

The transfer of energy between objects that are in physical contact

Convection

The transfer of energy between an object and its environment, due to air or fluid motion

Radiation

The transfer of energy to or from a body by means of the emission or absorption of electromagnetic radiation

The Viessmann Biomass Boiler FamilyPyrot, Dyn, Eco and Vitoligno

Example:

● A 35 bed residential establishment

● Annual heat requirement 321,000kW/h

● Currently uses approximately 41,000 litres of oil

● Approximate cost of oil £22,281 per annum (excluding maintenance)

● Convert to 150kW Biomass boiler

● Costs reduced to £13,126

● Able to apply for Renewable Heat Incentive at an annual income of £18,049

● Total annual saving of £31,175

● Payback over a five year period

RenEnergy client RHI Biomass calculator

Client: Property:

Total install price (£) 118,079.89 Boiler size (kW) 150 Year Money generated BalancekWh usage (heating) 301,714 0 0 -£118,079.89kWh usage (DHW) 4,762 1 £28,979.84 -£89,100.05Total usage kWh 306,477 2 £29,911.08 -£59,188.98Estimated running hours 2,043 3 £30,878.52 -£28,310.45RHI running hours T1 1,314 4 £31,883.78 £3,573.33RHI running hours T2 729 5 £32,928.53 £36,501.85Fuel used Wood chip 6 £34,014.52 £70,516.37Existing fuel OIL 7 £35,143.60 £105,659.97RHI rates T1 £0.079 8 £36,317.71 £141,977.68RHI rates T2 £0.020 9 £37,538.86 £179,516.54

RHI paiment T1 £ 15,570.90 10 £38,809.17 £218,325.72

RHI paiment T2 £ 2,187.54 11 £40,130.87 £258,456.58

Total RHI payment £ 17,758.44 12 £41,506.27 £299,962.86

Running cost replaced fuel (based on carbon trust figures) £ 20,808.32 13 £42,937.83 £342,900.68

Running cost biomass fuel (based on carbon trust figures) £ 9,086.91 14 £44,428.08 £387,328.77

Maintenance replaced fuel/year £ 500.00 15 £45,979.72 £433,308.48

Maintenance biomass fuel/year £ 1,000.00 16 £47,595.54 £480,904.02Estimated annual increase fossil fuel 5.00% 17 £49,278.49 £530,182.51Estimated annual increase biomass fuel 5.00% 18 £51,031.65 £581,214.16Estimated annual increase maintenance 2.00% 19 £52,858.25 £634,072.41Estimated annual increase RHI payment 2.00% 20 £54,761.69 £688,834.09 Total money generated £806,913.99Payback, years 4Return on investment in first year 24.54%Assumptions highlighted in BLUE

Any Questions?

Thank you