RHI Accreditation time for Kiln Drying Firewood ?

[arboriculturist]

I had a conversation last Sunday with a man who claimed you could be accredited for RHI payments for running a Firewood Drying Kiln in 4 weeks.

 

His aim I think was to becombe accredited in time to beat the proposed 1st January 2015 estimated 20% degression in payments, when the Tier 1 rates could fall from 7.6p/kWh to 6.1p/kWh.

 

Do you think this is humanly possible?

 

I expect there are lots on the Forum keeping their fingers crossed!

[Chalgravesteve]

I am in that process at the moment. My understanding is that the date of your application for RHI is the point at which the start price will apply, so my submitted application should be at the 7.6p rate.

 

However you cannot make a full application for RHI payments until the system (boiler plus kiln and all the ancillary attachments are fully installed. So if you are trying to arrange purchase supply installation commissioning and application in 4 weeks I think you will find that difficult.

[Chalgravesteve]

The current tarriff is 7.6p. Ofgem are due to issue a quarterly report to the period of the end of October by the end of November. It will be that report that decides and determines whether there will be a further degression of the existing tariff and the date that it will take effect by.

 

There is nothing at the moment that says a tariff change WILL take place on 1st Jan 2015 as far as I am aware, other than speculation that it might. The degression and change in the tariff is based upon the absorbtion of the budget for RHI payments as new claims/applications are made. Therefore, the greater the number of applications (which is what appears to be happening with Biomass Boilers) the greater the likelihood that a reduction in the tarrif will occur and that it will be implemented sooner rather than later.

[Billy68]

Dose any one in the northeast sell rhi wood I have a customer waiting

[Duffryn]

The system would have to be installed and commissioned, the RHI applied for and the application deemed to have been correctly submitted by Ofgem ( a 2-3 week process in itself) before Jan 1st for the existing rates to apply.

 

I presume that you are talking about the Glenfarrow kiln here ? They could probably install and commission it very quickly, they would be cutting it fine on the application though. Be warned about this kiln , it will not deliver anywhere near a 175kwh output it claims and will use a lot more wood as fuel than you will likely be told. There are a couple of Arbtalk members on here who have one - might be an idea to speak to them first.

[kevinjohnsonmbe]

The potential for future drops in the RHI rate should be built into your business model as an inevitable liability.

 

Look at the Raison d'être for the RHI - it exists to encourage the move from fossil fuel to renewable sources. It's an incentive to invest and reduce carbon emissions. It is inevitable that as more take the plunge, the rates will fall because the RHI has done it's job - incentivised!

 

There is a finite amount of funding allocated to the RHI system. Once the trigger points for spending have been breached, the levels are reduced - that detail comes out from DECC in a news release periodically.

 

A slightly different scenario, but look at solar PV rates. They were over generous to start with which resulted in unforeseen massive take-up (including companies that would supply & install for free so long as they got the FiT.) Consequence - significant drop in tariff and increased qualifying criteria.

 

If install project figures are so tight as to rely upon the RHI (at it's current level) there are likely to be some deals to be had when over commitment leads to bankruptcy and asset dumping.

[arboriculturist]

The system would have to be installed and commissioned, the RHI applied for and the application deemed to have been correctly submitted by Ofgem ( a 2-3 week process in itself) before Jan 1st for the existing rates to apply.

 

I presume that you are talking about the Glenfarrow kiln here ? They could probably install and commission it very quickly, they would be cutting it fine on the application though. Be warned about this kiln , it will not deliver anywhere near a 175kwh output it claims and will use a lot more wood as fuel than you will likely be told. There are a couple of Arbtalk members on here who have one - might be an idea to speak to them first.

 

Ah good to see you back on the Forum.

 

I was not referring to the GF setup, we both know all about that. They had specifically prepped. the fuel ready for the certification process - in reality very few will be burning timber with that low an MC in their batch boiler.

 

As always many of these claims are not actual reality - preparing low MC fuel and tending batch boilers is time consuming if they are to run anywhere near efficient.

 

Also all the Commercial RHI payments are taxable at the standard rate.

 

I am waiting to see who else launches a chip boiler / container package onto the market ?

[skyhuck]

The potential for future drops in the RHI rate should be built into your business model as an inevitable liability.

 

 

Once you have been accredited your tariff is guaranteed for 20 years.

[kevinjohnsonmbe]

Once you have been accredited your tariff is guaranteed for 20 years.

 

Ah, ok! You're probably more up to speed with that as you're in it at the mo, I only watch the commercial tariff with a passing interest.

 

Still, would be a brave call to think there's no way it could be reduced / removed.... Who knows, we might end up with a UKIP government the way things are going then it'll be even fuller steam ahead with tracking!

[arboriculturist]

Once you have been accredited your tariff is guaranteed for 20 years.

 

Quite right "future drops in the RHI rate" ( assessed quarterly)

 

Also correct " Once you have been accredited your tariff is guaranteed for 20 years"