January 2015 Biomass RHI payment regression cuts planned

[arboriculturist]

With the next commercial RHI 'degression' cut in tariffs due in January and thereafter further cuts to follow, using Biomass to dry firewood and chip is going to look far less attractive.

 

A 199kW project, at the 7.6p per kWh rate will generate approximately £19,783 per annum in commercial RHI payments.

 

Following the next proposed degression of 20% in January at the lower rate of 6.1p/kWh, the payments would be approximately £15,951, being £4,000 a year less.

 

For those who are already accredited the cut in tariff payment will not affect you - for those yet to sign up, this changes the whole equation when it comes to installing a new biomass drying system!

[elfinwood saws]

Got our second 100kw system going in next week!

[arboriculturist]

Got our second 100kw system going in next week!

 

You will be the envy of many! - hope you got the pre Oct 2014 tariff on the 2nd system.

 

Are you on Chip and container drying?

[kevinjohnsonmbe]

I'm not so well read in on the RHI when associated with log / chip drying as compared to commercial and domestic applications for providing heating and/or hot water for buildings. Does it come in on the same tariff schemes as heating/hot water for buildings?

 

So, if you use RHI to dry logs then sell the logs to (for example) domestic log burners that don't qualify for RHI is that still an eligible process?

 

Not sure I've worded that so as to make the question entirely clear.

 

If you have an RHI qualifying technology which you use to dry logs then the logs are sold retail to any customer (wether using an RHI tech or not) is the drying of the logs an RHI eligible process?

 

Hope that doesn't come across as a bone question!

[Chalgravesteve]

My 195Kw boiler/kiln will be completed on Monday.

 

RHI is paid out for any eligible heat use, which in the context of commercial use is quite wide. The use of a woodfired boiler to kiln dry logs for sale to domestic users is an acceptable form of the use of the heat derived from the boiler. The use of the log by the domestic (or commercial) user is irrelevant. The dried log could be used as a woodfuel in open fires, wood burners, BBQ, Garden Firepits, etc etc it makes no odds as far as the payment of RHI goes to the drying process.

[Mortimer Firewood]

Does it matter when the system will still be paid for in less than 3 years.

 

Using a local chap and sourcing the parts myself it could be paid for in under 18 months

[Chalgravesteve]

Does it matter when the system will still be paid for in less than 3 years.

 

Using a local chap and sourcing the parts myself it could be paid for in under 18 months

 

You might be able to but you have to use an RHI accredited boiler that meets the criteria provided by Ofgem. There are relatively few of them in the 100 -200 Kw capacity. You can build your own kiln, but you still have to use accredited heat meters and stuff plus any pipework has to be insulated to certain criteria as well. Not a walk in the park, but doable I would think.

 

And yes, so long as we operate the boiler at capacity for the required 1318 hours per annum to achieve tier one payout, the payback time will be around 3 to 4 years for the whole system inc capital and interest.

[skyhuck]

Are any of you self suppliers of fuel, using Arb arisings???

[Chalgravesteve]

I am looking for additional tree surgeons who want to drop off their logs and woodchip at the end of a day. I am based in Toddington. Beds (J12 of M1).

 

As part of the deal, I will advertise your services for free on my new logs sales website and will offer the opportunity if required for anyone partnering with us, to purchase kiln dried logs at wholesale price for their own resale so they can service their own customers. PM me if you want more info.

[skyhuck]

I've 90KW boiler going it the first week in December, just getting all the paper work sorted, how have you guys sorted burning Arb arisings?

 

Do you call it Municipal waste?? seem silly really as its actually Virgin timber, but hey whatever ticks the box.

Edited November 16, 2014 by skyhuck