1. Looking forward …to a greener future Damian Baker Director – RenEnergy The Renewable Heating Incentive Explained

2. Looking forward …to a greener future RenEnergy Renewable Heat Incentive 10-May-2012 Presented by Damian Baker Managing Director RenEnergy Limited

3. Renewable Heat It is not like installing PV The process The Options What is eligible

6. Technologies covered Biomass Heat pumps Bio methane Geothermal Solar Thermal 6 © Rob Gwillim 2012

7. 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

8. Biomass Systems Wood chip Wood pellets Logs Some wastes Biogas from AD 8

9. 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 95 0 C. 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.

10. 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.

11. 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.

12. 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.

13. Heat pump systems From CORGI GSHP Guide TypeEligible Air-AirNo Heat reclaimNo Air - waterNo Water -WaterYes Ground to WaterYes 13

14. 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 14

15. Heat meters Heat meters consist of three components Flow and return temperature sensors Flow meter Integrator They are calibrated for a specific fluid 15

16. 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) 16

17. 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) 17

18. 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) 18

19. 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…

20. 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?

21. 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 ThermalHeat PumpBiomass Roof orientationGround source area Space for storage and plant room Space for cylinder / plant room Ground condition (water/water) Delivery access Pipe runs through buildingEmitters typeSupply scheme Restricted areaPlant room locationRestricted area Planning permissionDHW demandPlanning permission Existing building (integration with renewables sources) Planning permission Existing building (integration with renewables sources)

22. 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

23. The Viessmann Biomass Boiler Family Pyrot, Dyn, Eco and Vitoligno

24. 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

25. RenEnergy client RHI Biomass calculator Client:Property: Total install price (£) 118,079.89 Boiler size (kW) 150YearMoney generatedBalance kWh usage (heating) 301,71400-£118,079.89 kWh usage (DHW) 4,7621£28,979.84-£89,100.05 Total usage kWh 306,4772£29,911.08-£59,188.98 Estimated running hours 2,0433£30,878.52-£28,310.45 RHI running hours T1 1,3144£31,883.78£3,573.33 RHI running hours T2 7295£32,928.53£36,501.85 Fuel used Wood chip6£34,014.52£70,516.37 Existing fuel OIL7£35,143.60£105,659.97 RHI rates T1 £0.0798£36,317.71£141,977.68 RHI rates T2 £0.0209£37,538.86£179,516.54 RHI paiment T1 £ 15,570.9010£38,809.17£218,325.72 RHI paiment T2 £ 2,187.5411£40,130.87£258,456.58 Total RHI payment £ 17,758.4412£41,506.27£299,962.86 Running cost replaced fuel (based on carbon trust figures) £ 20,808.3213£42,937.83£342,900.68 Running cost biomass fuel (based on carbon trust figures) £ 9,086.9114£44,428.08£387,328.77 Maintenance replaced fuel/year £ 500.0015£45,979.72£433,308.48 Maintenance biomass fuel/year £ 1,000.0016£47,595.54£480,904.02 Estimated annual increase fossil fuel 5.00%17£49,278.49£530,182.51 Estimated annual increase biomass fuel 5.00%18£51,031.65£581,214.16 Estimated annual increase maintenance 2.00%19£52,858.25£634,072.41 Estimated annual increase RHI payment 2.00%20£54,761.69£688,834.09 Total money generated£806,913.99 Payback, years4 Return on investment in first year24.54% Assumptions highlighted in BLUE

27. Any Questions?

28. Thank you