Farmers and landowners to benefit from RHI ex

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Farmers and landowners to benefit from RHI expansion

November 2012

renewable energy news

Farmers looking to invest in renewable heat projects have received a boost as DECC outline plans to expand the current non-domestic RHI scheme to incorporate technologies previously omitted from the incentive.

The plans have been laid out in a consultation that is running from 20th September to 7th December. It includes proposals for supporting air to air heat pumps (AAHP), biomass direct air heating, biogas combustion over 200kW, biomass and bio liquid CHP and deep geothermal.

Rebecca Seaman, Partner at Fisher German chartered surveyors, believes that it provides farmers with an opportunity to heat the non domestic side of their business using technologies which may have been too expensive to implement prior to the RHI.

Rebecca comments “A number of these technologies were not included in the RHI scheme originally as they had metering issues and a lack of data on certain types of technology.

"The proposal to expand the non-domestic RHI scheme includes technologies that will potentially benefit farmers, such as, biomass direct air heating, biogas combustion over 200kW and biomass and bioliquid CHP.

“DECC has recognised that biomass direct air heating systems such as biomass grain dryers, could provide a valuable source of renewable heat. DECC proposes to introduce support for direct air heaters which are specifically designed and installed to use biomass. This technology can be used for operations such as drying corn, grain and herbs. DECC have proposed a tariff of 2.1p/kWh for installation <1MW and 1p/kWh for installations >1MW.

"Biogas CHP systems over 200kW receive support for electrical production under the Feed in Tariff and Renewables Obligation (RO) schemes. However heat produced by biogas CHP systems is currently limited to 200kW under the RHI, creating an incompatibility with schemes. This has been amended so that heat produced by biogas CHP systems will receive a proposed tariff of 5.9p/kWh for medium installation (200-500kW) and 2.2p/kWh for larger installations (>500kW).

“DECC also want to improve support for biomass and bioliquid CHP under the RHI. There is no specific CHP tariff rate at present, and a CHP installation will only receive the tariff applicable to the technology it uses. For example, a 1MW biomass CHP installation will receive an RHI tariff rate of 1p/kWh and as present bioliquid CHP is not supported at all.  Therefore DECC proposes to introduce a new tariff rate of 4.1p/kWh for biomass and biofuel CHP”.

Following the consultation DECC will finalise the proposals for Government and EU approval, with the aim of introducing new support by Summer 2013.

For further information, please contact Rebecca Seaman on 01858 411219 or email rebecca.seaman@fishergerman.co.uk

 
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