RHI update

We were very shocked this morning, when we looked at the date of our last blog – May 2016 arrrggghhh!!

We have been so busy that we have not had time to think, more later on what we have been up to but, more importantly for now, up to date news on the Domestic RHI.

Ofgem published a factsheet in December 2016 entitled “Important Changes to the RHI”. The factsheet floated the potential idea of an uplift in the tariff and also a cap in the kWh to come in to force in Spring of this year. The current tariff is 4.21p per kWh – this is the figure that you would receive if you installed a domestic biomass plant today. What the government are proposing is an uplift to 6.44p per kWh in Spring but also a cap at 25,000 kWh.

We have just come off the phone with Ofgem and, what is interesting, is that the uplift will be automatic, so, if you were to instal today (for example) you would automatically receive the uplifted amount if it comes into force in Spring BUT you would not receive the cap, unless you had installed after the date when any potential cap was announced.

It would seem to us that now would be a good time to instal a biomass system, if you are thinking of it, because there is a short time frame in which you can potentially reap the benefits of a sizeable uplift in tariff, without having to bear the burden of any potential caps its a – win/win scenario but hurry, it won’t be around for long!

The Future of the RHI

The Chancellor of the Exchequer delivered his spending review on Wednesday, which was much awaited in the industry, as it contained information about the future of the Renewable Heat Incentive. Here is what it said :

“The Government will increase funding for the Renewable Heat Incentive to £1.5  billion in 2021, to ensure that the UK continues to make progress towards its climate goals, while reforming the scheme to improve value for money, delivering savings of almost £700 million by 2020-21.”

Below is a table of how the year on year budget will look moving forward. As soon as we have any information on the scheme reforms, we will of course let you know.

Happy Birthday to the Domestic RHI

The Domestic RHI celebrated its first birthday last month, here are some key facts regarding its impact so far:

Over 30,000 Domestic RHI accreditations have been made since its launch, helping to create cleener, greener and cheaper heating for many homes across the UK.

DECC estimates that these accreditations will save approximately 1.4MT CO2 – in the 7 year membership period of the Domestic RHI this is equivalent to … 150,000,000 gallons of petrol, to the moon and back 7,000 times or, enough electricity to power 180,000 homes for a year!

Of these 30,000 accreditations 30% are new applicants and 70% are legacy applicants

The make up of the statistics for each technology is:

42% for Air Source Heat Pumps, 26% for Biomass, 19% for Solar Thermal & 14% for Ground Source Heat Pumps

Very chilly and weather forecast for colder to come

biomass wood pellet living flame boilerIt was so cold on site in Bradford-on-Avon this morning, I did not envy our team on flue duty up a scaffold and was very pleased to get back to the office for a cuppa in front of a warm and toasty biomass boiler!

Domestic RHI

We are receiving some great feedback from our clients regarding their domestic RHI applications; our current record is Alan Moore, whose application was agreed in 10 seconds -  he is looking forward to his first payment from the government any day now. Our personal application (for our 22kw MCZ Musa in our house) has been agreed and we are expecting our first payment on Christmas Day!

 

 

Domestic RHI – latest update from DECC

Peregrine corresponded with the Head of the RHI team last week. He asked her whether the RHI domestic phase 2 consultation document was still on schedule to be published next month and, if so, whether she had a date set for its publication. She had some very encouraging words in her reply and we quote : “…we are on track to publish in September and I expect it to be in the second half. The consultation period should be for 12 weeks and will be available on the RHI pages of the DECC website…if it would be helpful I can email you when we publish it?”

Needless to say, as soon as we hear further we will let you know – watch this space…