Renewable Heat Incentive

[djbobbins]

I was just wondering if people are starting to see, or are anticipating, increased demand for log and chip with the RHI coming in?

 

I'm curious - I work in the energy industry (electricity) and am interested in firewood / tree work etc as a hobby and for personal use only. A friend of mine is looking at moving over from lpg to biomass and I've had similar thoughts. We both have ample personal supply of wood but it struck me that if other people do the same there will be a huge increase in demand.

 

A biomass boiler will use a lot more fuel than a cosy open fire that people buy logs for at the moment!! At my pretty well insulated, double glazed house, we get through about 1200 litres of oil a year (i.e. a tonne, near as damn it), maybe half a tonne of coal and maybe 3 cubes of dried, stacked alder (I guess another tonne or so).

 

If I convert all that to wood, using the relative calorific values, I get to 5 tonnes per year of woodchip. That's for one moderate sized house, dounble glazed with cavity wall and loft insulation. Even if new biomass boiler penetration is low, I can only see demand and prices going up up up in the next few years.

[hardtop110]

Yup. I'm just putting in a boiler stove, thermal store and solar hw panels to reduce our oil dependency. Well get the rhi payments for the solar.

 

TBH though the rhi payments for biomass boilers are going to have to be significant for most folk (not on oil) to move away from the convenience of gas or leccy. If they are doing it for the cash, solar pv is likely to provide a better return.

[djbobbins]

Anyone connected to mains gas would have to be tapped at current prices to switch to biomass. I don't really buy into the concept of electric heating whilst we are using fossil fuels for generating the power; the only logic for it that I see is those countries which have very large amounts of baseload or uncontrollable generation (e.g. nuclear, wind, run of river hydro).

 

But I stand by my opinion that with the RHI, demand for chip is going to go up, and particulary in areas off the gas grid. I'm just curious if / how people are preparing for this, in terms of physical equipment, wood supply and links with installers etc.

[Alycidon]

Anyone connected to mains gas would have to be tapped at current prices to switch to biomass. I don't really buy into the concept of electric heating whilst we are using fossil fuels for generating the power; the only logic for it that I see is those countries which have very large amounts of baseload or uncontrollable generation (e.g. nuclear, wind, run of river hydro).

 

But I stand by my opinion that with the RHI, demand for chip is going to go up, and particulary in areas off the gas grid. I'm just curious if / how people are preparing for this, in terms of physical equipment, wood supply and links with installers etc.

 

This link will allow you to check and compare different energy costs, it is updates 2 or 3 times a year. Details on energy costs per type and how those figures are arrived at are on a seperate sheet.

Energy Cost Comparison | Nottingham Energy Partnership

 

I put a wood pellet boiler in to replace oil 3 years ago, at the time pellets were £130 a tonne and oil 65ppl and rising. Today oil is fluctuating around 65p.pellets are £200. There is a monopoly on pellets and the main player sets the prices to be just inside oil.

 

Yes I can see a major expansion in wood as a fuel, thats why I am in that business !!. Customers want independence from large energy suppliers.

 

Prices will rise of course they will, timber in Scotland that was practically worthless five years ago owing to its value against the cost of harvesting it can now all be used as it will become profitable to sell it. So investing in cord or standing timer should stand you in good stead in the future.

 

A

[renewablejohn]

We have set up our operation to cater for this demand as woodfuel supplier producing G30 chip, woodpellets, briquettes, in addition to normal logs and kindling. By having solar kilns we can guarantee a moisture content of less than 20%. What makes the operation work is the ability to turn any type of "waste" virgin timber into fuel instead of being reliant on processor sized cordwood. For security of supply we are actively purchasing woodland in a 25 mile radius as well as planting new woodland.

[ash_smith123]

How are you guys getting grants fron the RHI allready, i enquired about it and they told me that aplications for damestic boilers started from October 2012!?

[WINTERBOURNE]

No this is not quite right.

see

Renewable Heat Incentive (RHI) - Department of Energy and Climate Change

Domestic

Retrospective to 15th July 2009 for eligible installs

(MCS accredited boilers with MCS accredited installers).

Payment will come Ocxtober 2012 over 20 years.

There is a possible one off payment called the RHPP (Renewable Heat Premium Payment) if off gas for £950 in the meantime before the RHI payment commence October 2012.

[ash_smith123]

Thanks for clearing that up! Makes sence now

[Jamiedownes]

The installation can be certified as accredited retrospectively but payment will not be back dated...

RHI for business and multiple home installation begins this year, they expect to be able to accept applications at the end of September

[Jamiedownes]

Business application have been delayed today, expect to be able to apply end of November now, they are reducing the rate for large boilers