- Energy Saving
- Heat Pumps
- Electricity Generation
Energy efficiency is not just low-hanging fruit; it is fruit on the ground.Stephen Chu, US Secretary of Energy
RHI rates looking to improve for biomass
The government has just confirmed their proposed rates for the Renewable Heat Incentive (RHI) for a number of technologies based upon uptake.
The numbers show a marked increase in ground source heat pumps (GSHP), solar thermal and large biomass — particularly large biomass, where the rates double from 1.0 p/kWh to 2.0 p/kWh.
Click on table to see a larger version.
Biomass boilers above 1 MW — particularly those associated with large horticulture sites — were already looking at reasonable paybacks. However, paybacks were only better than the medium rate, at substantially above 1 MW (2-3MW+), so this is a welcome change.
Meanwhile, medium biomass is expected to hit its ‘trigger’ shortly, which means that rates will be reduced to reflect the uptake of the technology. Once projected RHI payments on any particular technology exceed DECC's intended levels, this safeguard is brought into effect. This will bring the medium tariff down to 5.0 p/kWh (for tier 1 payments) and 2.1 p/kWh (tier 2).
In our experience (and indeed Ofgem’s), the number of biomass installations has far outstripped that of other technologies. The rates for ground source heat pumps are also nearly doubled, and may be a consideration where previously biomass was the preferred option.
Other technologies (air source heat pumps and biomass direct air heating) set to come in on the expansion of the scheme have also seen their proposed rates increase.