1. Renewable Heat Incentive How to apply GSHPA, 22 October Barney Merrett Manager – Small & Medium Generation RHI, Ofgem E-Serve

2. RHI Opportunities Renewable Heat Incentive (RHI) – what is it?
RHI Opportunities
Renewable Heat Incentive (RHI)  – what is it?
Levels of support provided by the RHI
Technology options
Eligible heat uses & metering
How to apply
What to be aware of
How to get through the accreditation process

3.
The RHI
A world-first financial incentive to promote the generation of renewable heat
£860m for RHI over four years confirmed spend
Scheme funded through taxation, not a levy
Payments made quarterly over 20 year period on basis of metered heat generation (p/kWh)
Non-domestics only at present domestics to be included later
Estimated 1m participants by 2020
Went live November 2011
Ofgem responsible for administration – DECC responsible for policy

4. Ofgem E-Serve’s role in the RHI
The RHI is a DECC initiative (£860M)
Ofgem E-Serve is the Administrator
Our role includes:
Handling enquiries
Evaluating eligibility and processing applications
Holding data
Making payments
Fraud and compliance
Auditing

5. Technologies currently supported
Technologies currently supported
Technologies currently supported
Solar thermal (below 200kWth)
Solid biomass, e.g. wood chip
Municipal Solid Waste
Biogas (below 200kWth)
Ground/water source heat pumps (not air)
Geothermal
Biomethane injection to the gas grid

6. RHI tariff rates
Generation Technology
Scale (installation capacity)
RHI tariff payment/kWh (p)
Biomass
Small commercial (< 200kWth)
8.3/2.1
Medium commercial (200kWth < 1MWth)
5.1/2.1
Large commercial (>= 1MWth) 1
Heat pumps/deep geothermal
Small commercial (< 100kWth)
4.7
Large commercial (> 100kWth)
3.4
Solar collectors
< 200kWth
8.9
Biomethane and biogas combustion
7.1

7. Ofgem E-Serve’s role in the RHI
Ofgem E-Serve’s role in the RHI
RHI Process
The RHI is a DECC initiative (£860M)
Ofgem E-Serve is the Administrator
Our role includes:
Handling enquiries
Evaluating eligibility and processing applications
Holding data
Making payments
Fraud and compliance, including audits
One Off
Repeated Xx

8. Key eligibility criteria
Installed/first commissioned on or after 15 July 2009
Equipment new at time of installation
Grants not received for purchase/installation of equipment
Medium of heat transfer must be liquid or steam - i.e. no direct air heating
No single domestics at present (but RHPP may be an option)
Definition of domestics: “single self contained premises used wholly or mainly as a private residential dwelling where the fabric of the building has not been significantly adapted for non-residential use”
MCS or equivalent EN45011
Requirement under 45kWth for solid biomass, heat pumps, solar thermal
Certification required for both the installer (at time of installation) and plant

9. Eligible Heat Uses Eligible heat uses Heat Uses Definition of building
In a building for…
Space heating, hot water or 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”
NB: must not generate heat for predominant purpose of increasing payments

10. Compliance and enforcement
One of Ofgem’s functions is to monitor and enforce compliance with upfront and ongoing requirements
We aim to be helpful and avoid being unnecessarily onerous but…
WE WILL AUDIT
In deciding whether to take enforcement action, we will take into consideration circumstances including:
Seriousness of the non-compliance
Whether the participant voluntarily reported the non-compliance
Reasons why the non-compliance occurred and any mitigating circumstances
Whether there is a history of non-compliance by the participant
Whether the participant has gained financially through the non-compliance

11. Other documentation you may need to apply…
Other documentation you may need to apply…
Documentation you may need…
Receipts and/or invoices relating to the installation of the equipment
Commissioning certificate
Commissioning report
Photograph of the installation clearly showing the serial number of the equipment, and output capacity
Evidence that any grant has been surrendered or repaid in full
Copy of meter Class 2 Measuring Instruments Directive (MID) certificate
Manufacturer’s technical specification for heat pump units to support COP claims Xx

12. Metering Metering issues: Types of meters Eligibility Evidence
In pipe (mechanical, pressure)
Ultrasonic/electromagnetic
Eligibility
Evidence

13. Metering eligibility At least one meter – heat or steam
Meter standards – MID Conformity, Class 2 Accuracy
Appropriately calibrated and installed
Meter placement
Schematic diagrams should be clear
Independent report on metering arrangements
Heat loss calculation – only where metering is unduly burdensome

14. Metering Evidence Measuring Instruments Directive (MID) Conformity
Evidence – “Certificates of Conformity”
NB: “Type Examination (‘B’) Certificate” is not enough...
Evidence of Accuracy
Class 2
Photo (integrated/packaged heat meter)
Technical specifications or testing certificates for each component (separate components)
Independent Report on Metering Arrangements
Should be complete – and sufficiently detailed that we can rely on this as evidence

15. Simple or complex metering? Simple or Complex Metering?
Do any of following apply?
Heat delivered by steam
CHP
Heat used in more than one building
Ineligible heat uses on heating system
Yes – one or more apply
No – none apply
COMPLEX
Need to meter all of:
Heat generated by eligible installation
Total eligible use of heat on system
Heat generated by all plants on heating system
SIMPLE
Only need to meter:
Heat generated by eligible installation

16. Simple or complex metering? Simple or Complex Metering?
“We need to know the fraction of heat used that is coming from the RHI-eligible installation – we can only pay for that fraction of the heat used for eligible purposes”
SIMPLE
“Just meter the heat generated – we can pay for all of it”
Heat generated by RHI installation
Heat generated by RHI installation
Heat used for eligible purposes x
Heat generated by all plant on the heating system

17. Independent Report on Metering Arrangements (IRMAs)
Must be produced by a ‘competent’ individual
Unbiased and impartial
With PI insurance of at least £1 million
No list as yet but HVCA looking to produce one – Others are likely to become available
Needed for all installations over one MW and all complex systems over 45kW
A report template has been produced and must be followed

18. Heat Pumps
Heat pumps of all scales that utilise heat sourced from naturally occurring solar energy stored within the ground or surface water are eligible for the RHI
Heat pumps with an installation capacity of up to and including 45kWth must be certified under the MCS or equivalent scheme

19. Reversible Heat Pumps
Eligible, providing they are not used solely for generating cooling
Only heat generating is eligible for RHI support
Cooling generated must not be included in meter readings submitted to us
We may ask participants to explain how they will account for any cooling generated

20. RHI Criteria Specific to Heat Pumps
What are the regulations?
Regulation 8 relates to Heat Pumps
“Naturally occurring”
The “ground” (includes groundwater) or “surface water”.
COP of “at least 2.9”
Application process examples for heat pumps:
Demonstration of COP
Heat pumps with integrated immersion heaters
Other eligibility criteria in the wider regulations

21. Overview of the accreditation process

22. Application Process Managed online via the RHI register
Application Process
Managed online via the RHI register
Each applications has 3 Levels of checks before ‘Delegated Authority’ sign off
Applies to all RHI applications
...even those with an MCS certificate?
Application review process terminology
Full and preliminary applications Xx

23.
Timescales
No decision can be made until a full review has been conducted
Approximate timescale from submission to accreditation approval or rejection notification
Does not include time ‘with applicant’
Good quality applications are accredited
more quickly! Xx

24.
Application Process Xx

25. Xx

26. Level 1 Checks Quick ‘high level’ check
Level 1 Checks
Quick ‘high level’ check
Sufficient detail in text based answers
All documents provided are what is required
Any grant related issues raised at this point
Potential outcomes:
Everything present and correct. Assign onwards for Level 2 review.
Information missing. Place ‘With Applicant’ and make contact to request further information required. Once this is submitted process as per (a). Xx

27. Level 2 Checks Full eligibility check of an application.
Level 2 Checks
Full eligibility check of an application.
Check on details of documentation.
Check answers provided.
Full check on metering schematic to review suitability on metering.
Potential outcomes:
Everything present and correct. Assign onwards for Level 3 review.
Information missing. Place ‘With Applicant’ and make contact via CRM system to request further information required. Once this is submitted process as per (a). Xx

28.
Level 3 Checks
Provides quality assurance and checks consistency of findings during the level 2 review.
Review of any outstanding issues which could not be resolved at the Level 2 stage.
Any legal or technical expertise can be requested here if necessary
Ensure any ‘additional’ conditions are communicated
Special focus on metering schematic
Recommendation made to the delegated authority
Recommendation for approval
Recommendation for rejection Xx

29.
Ofgem Checks
Evidence to show ‘Installation’ is new: Invoices submitted for all components
Heat meters MID & class 2: Specific evidence i.e. a Certificate or Photo
Letter of Authority: To be written as per template (Guidance Note 2 or webpage)
Schematic review: Correct & must include all necessary components
Meter readings within effective date: Must be within 3 days of submission date
Evidence of existence: Commissioning Report
IMR (Independent Metering Report): Must be done by someone competent & using the required template
Proof of Heat Pump COP >2.9 : Manufacturers information
Solar thermal meter suitable for Glycol: Metering manual details

30. How to Apply for Accreditation
How to Apply for Accreditation

31. Top Tips: How to Ensure a Good Quality Application
Top Tips: How to Ensure a Good Quality Application
Utilise guidance resources available
...if something is still not clear, just ask!
Have required documentation available
Missing (posted) documents cause delays
Detailed schematic containing all relevant information required
Illegible / confusing documents
Simple / complex metering
Complex metering requirements for CHP, heat by steam, ineligible purposes and;
Heat generated and used in > 1 building
Sufficient detail in text based questions
Remember your log in details / quote RHI number Xx

32. Direct RHI Register Link
Direct RHI Register Link
Please go to our website address:
Select option to ‘Create a new RHI Account’ Xx

33. The RHI team – Ready to help

34. Ofgem E-Serve: How we can help
Ofgem E-Serve: How we can help
Enquiries: ,
Comprehensive published information;
Guidance on the Scheme
Volume 1 (Eligibility)
Volume 2 (Ongoing Obligations)
Supplementary fact sheets & FAQs
Online application process Xx

35.
Metering Schematics
Figure 1.8: Illustration of possible metering arrangement for a complex installation where decentralised ineligible plants (in this example, fossil fuel boilers) are located on secondary heating circuits in separate buildings. Note that the flow meter can be placed in either the flow or return pipe. Red lines denote the hot flow pipes, and blue lines indicate the cool return pipes. This schematic has been annotated with a key, a table of meter specifications, and building names/boundaries, as discussed in Section 1.4 of Volume One’s appendix Xx