Knowledge: Biomass
Realising returns
Tim McLeman, technical director at Wood Energy, discusses the challenge of
delivering returns across the lifespan of the RHI
t’s now been over
two years since
the launch of the
non-domestic RHI.
However, many
customers still remain unaware
that RHI tariff returns are tied
directly to the installed product
by its serial number. This is
signifi cant as the warranties on
many renewable technologies fall
well short of the scheme’s 20 year
return period. As a result, if the
technology breaks irreparably all
future RHI payments are lost.
I
Reviewing the scheme to
date
There is no question that small
and medium sized biomass
boilers have been the great
success story of the non-domestic
RHI. Whilst overall uptake in the
scheme is lagging behind target,
installations of biomass boilers
below 1MW have far exceeded
expectations, making up 93
percent of the 3,122 accredited
RHI installations to January 2014.
In December there was
further good news for the
industry with the government
announcing a range of changes
to the non domestic RHI. These
changes are aimed at getting
the country back on course
to meet its legal obligation to
deliver 15 percent of energy
demand through renewables
by 2020. Large biomass boilers
(1MW and above) are one of the
technologies to benefi t from these
new incentives. From April the
tariff on all large biomass boilers
installed after 21 January 2013
will double to 2p/kWh.
Based on these new tariffs
and information from a range
of industry sources, DECC has
produced a series of Market
Intelligence scenarios for RHI
deployment, suggesting over
4,000 biomass boiler installations
could be completed in 2015/2016
alone. Whilst these scenarios
remain a ‘best guess’ and
are subject to a great deal of
uncertainty, they still paint an
extremely encouraging picture for
the biomass industry, particularly
with the upcoming launch of the
domestic RHI.
maximum return for the end user.
This is a considerable
challenge for many of the
technologies covered under
RHI and biomass boilers are no
exception, with the large majority
of units currently on the market
warrantied for a period of fi ve
years at most. It is therefore
essential that all installers
and suppliers are upfront with
customers, explaining the
importance of installing top
quality biomass boilers and
providing clear guidance on the
maintenance required to keep
them operating effi ciently. This
will allow them to make a fully
informed decision about the costs
and benefi ts they can expect to
gain by taking advantage of RHI.
Several medium and large
biomass boilers have been
installed in container solutions.
These offer several advantages in
terms of reduced installation time
and space loss within buildings
and also make it much simpler
for a customer to move the
biomass boilers, allowing them
to retain RHI even if they switch
premises. Careful consideration
must be given to ensure that
the containers are properly
ventilated and that their external
appearance will not rapidly
deteriorate, causing them to
become an eyesore
The future is looking bright,
both for biomass boiler suppliers
and installers, and the renewables
industry as a whole, providing
they tackle these issues head on
and make sure that customers
get the maximum possible return
from their investment.
Avoiding the pitfalls
The long-term success of the
scheme does not simply depend
on increasing the number of
renewable energy installations
completed. With tariff payments
tied into quarterly meter readings
over 20 years, it is essential that
the technologies not only last,
but perform to a high standard
throughout this period, ensuring a
The warranties on many renewable
technologies fall well short of the
scheme’s 20 year return period
Words of wisdom: Tim McLeman of Wood Energy warns that as RHI
payments are tied to a product by its serial number, it is vital these
technologies last for the full 20 year term or all future payments are lost,
underlining the importance of an effective warranty
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