Renewable Heat Incentive

[Somecamel]

Hi Guys,

I'm rather confused over the R.H.I.

I was under the impression that the payments would be for 20 years but spread over 7.

Looking on the MCS calculator as an example it says a Solar Thermal system will generate 1732kW of deemed heat per year.

I was working out the R.H.I payments as follows

1732*0.192p= £332.54

* 20 years = £6650.88

/ 7 years = £950.12

I called ofgem, energy savings trust, MCS but no one can tell me what the deal is?

Help

 

[TedM]

The 20 years is already calculated in to the tariff so all you would get is £332.54 for 7 years.

 

[Gavin A]

The 20 years is already calculated in to the tariff so all you would get is £332.54 for 7 years.

what ted said

 

[Worcester]

Solar thermal doesn't add up under RHI as a standalone technology, it only adds up if the cylinder is being replaced anyway.

In which case, since the input to the heating requirements is deemed from solar thermal and not deducted from deemed heat inputs from other RHI systems (unless metered, in which case net), then you get a potential 'double payment' for the heat.

So if replacing the cylinder for a biomass or heatpump change, then it makes good economic sense to add in Solar Thermal

OR if as we just did for a client, they were looking for an upgrade to their DHW cylinder from a vented cylinder and shower pump to an unvented cylinder, then the additional cost of a solar cylinder and solar thermal makes sense.

Remember it is very much an INCENTIVE, when planning other changes (RHI = Renewable Heat INCENTIVE).

The whole RHI figures are based around that premise, i.e it is anticipated that you will need to add / deduct the cost of the fact that the boiler etc was going to be replaced anyway to make the figures stack up. - It's NOT an investment scheme like the FiT turned out to be.

 

[Gavin A]

assuming that nothing on this changes in the final guidance.

have you looked at this since the change to the deeming method was introduced? Should make things better for swh.

I understand the idea was that it was supposed to cover the costs for those on oil / electric rather than the gas grid, but haven't had chance to work up the figures to see if this works or not. I suspect it will mostly work for retrofit systems using retrofit immersion coils, external heat exchangers etc other than where the hot water system is being replaced anyway.

 

[Worcester]

The original intention was that it would only apply to 'off gas grid' propoerties, they then decided to include them.

When you add in all the extra work required such as increasing rad sizes with heat pumps etc, we have not been able to make any renewable heat option be a better deal than an efficient gas system.. - So I guess they must have it about right! (from their perspective). Against oil/lpg everything is a winner, though heat pumps are only the right solution in a few cases.

 

[The Solar King]

The RHI add will up in a lot of cases for retrofit Solar Thermal. Worcester mentions changing the hot water cylinder. The much higher performance due to reduced standing losses does not show in the figures produced from MCS024, the output calculation method. This is a significant additional saving over an existing installation.

The STA will soon have a payback calculator for members which will take this into account.

Main problem for retrofit is still the dreaded combi boiler. Whilst there are work rounds, all are a compromise that reduces the benefits of ST.

Also be aware that once a deemed figure for output on ST is registered, it cannot be altered. This is important as occupancy makes a significant difference to the renewable heat input calculated and additional energy saved. Had a case where a family with one young child were looking at ST, but it won't be fully viable until they have stopped popping them out. Best to move Granny and Grandad in when the system is being installed. More seriously there will be a vigorous audit to stop just this kind of gaming. If caught, you loose the RHI.