RHI Accreditation time for Kiln Drying Firewood ?

[Duffryn]

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 ?

 

Thanks. Unless its a 500kwh system I don't think any will launch (and there is a very limited market for these). The Heizomat and Lense system would be the best choice here ( absolutely brilliant). Re the system you are looking out why not make it a condition of the contract that the system is accredited at the current rate ? if they go for this then you really cannot loose.

[skyhuck]

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!

 

Interestingly Nigel Farage has said that if there were in power (which IMO is a pipe dream) they would not retrospectively change policy, European or otherwise.

[arboriculturist]

Thanks. Unless its a 500kwh system I don't think any will launch (and there is a very limited market for these). The Heizomat and Lense system would be the best choice here ( absolutely brilliant). Re the system you are looking out why not make it a condition of the contract that the system is accredited at the current rate ? if they go for this then you really cannot loose.

 

Thanks for the feedback - I definately had no plans to persue the GF route.

 

Your advice re: contract set at the current rate is inspired - I'll remember that option for future unrelated negotiations.

 

I think Rob at HH uses the Heizomat and Lenz (nothing better IMO) - but if I recall correctly, at £90 - 100K for the chip / lenz / 40ft container installation, it will be a bit rich for the Firewood retailers out there? However running 24/7 dropping down to Tier 2 RHI, there is still a model there with good margins, especially if you can secure some contract drying.

 

What do you think?

[Duffryn]

Thanks for the feedback - I definately had no plans to persue the GF route.

 

Your advice re: contract set at the current rate is inspired - I'll remember that option for future unrelated negotiations.

 

I think Rob at HH uses the Heizomat and Lenz, but if I recall correctly, at £90 - 100K for the chip / lenz / 40ft container installation, it will be a bit rich for the Firewood retailers out there? However running 24/7 dropping down to Tier 2 RHI, there is still a model there with good margins, especially if you can secure some contract drying.

 

What do you think?

 

Rob is a close friend and I have helped him set up this business. The system he is selling ( other companies sell the same system for a similar price so I am not in any way trying to promote him here) is a woodchip AND log drying system. At the current RHI rate you would get a 20% ROI excluding any markup on the dried wood / chip. The ROI will drop to circa 15% if the rate drops as expected in January (figures based on tier 1) . If you have the ability to finance the upfront investment then it offers a great return and importantly this system actually works incredibly well.

[arboriculturist]

Rob is a close friend and I have helped him set up this business. The system he is selling ( other companies sell the same system for a similar price so I am not in any way trying to promote him here) is a woodchip AND log drying system. At the current RHI rate you would get a 20% ROI excluding any markup on the dried wood / chip. The ROI will drop to circa 15% if the rate drops as expected in January (figures based on tier 1) . If you have the ability to finance the upfront investment then it offers a great return and importantly this system actually works incredibly well.

 

Thanks - I agree on all counts!

[Stu Baillie]

I am trying to do the same in the same timescale, thinking of using 2 vigas 100/80 boilers...with 4 kroll fans/heat exchangers still building the room yet,!!!

[kevinjohnsonmbe]

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

 

Do you get this email update Huck?

 

I get what you're saying about the tariff being set for 20 years, but this is the periodic email I get which seems to indicate that once the 'expenditure trigger point' has been reached, the tariffs get reduced.

 

Anyone seen this:

 

Dear stakeholder,

 

As required by the RHI regulations we have today published the seventh quarterly forecast for the non-domestic scheme and the second for the domestic scheme.

 

You can read the announcements in full here:

 

Non-domestic:

https://www.gov.uk/government/statistical-data-sets/rhi-mechanism-for-budget-management-estimated-commitments

 

Domestic:

https://www.gov.uk/government/publications/domestic-rhi-mechanism-for-budget-management-estimated-commitments

 

 

Headlines

 

Non-domestic:

 

The 100% total scheme trigger has been hit. Total forecast expenditure for the non-domestic scheme is £209.1 million, this is £1.9 million above the 100% trigger for this quarter of £207.2 million. The total estimated expenditure represents the amount we anticipate we will pay out between 31 October 2014 and 30 October 2015, based on current application data. The result of this as set out in regulations is that all technologies where the forecast is above anticipated expenditure will receive an additional 5% reduction to tariffs.

 

The small biomass tariff will be reduced by a further 10% from 1st January 2015. This is because:

The 100% scheme trigger was exceeded this quarter for the first time. This applies a 5% reduction to any tariff which has exceeded its individual expenditure threshold.

Small biomass has again exceeded its individual expenditure threshold or ‘trigger’ (that is, more is being spent on small biomass than expected)

Following a tariff reduction of 10% in the previous quarter, forecast expenditure has grown over the last quarter by more than 50%, but less than 150% of the anticipated growth rate. This applies an additional 5% reduction.

The biomethane tariff will be reduced by 10% from 1st January 2015. This is because:

Biomethane has exceeded its individual technology trigger,

The 100% total scheme trigger was also hit adding a further 5% to the initial 5% cut applied to a first degression to a tariff.

 

 

Domestic:

 

· The domestic biomass tariff will be reduced by 10% from 1st January 2015. This because forecast expenditure on biomass, at £5.8m, is £1.4m above its trigger of £4.2m for the quarter ending 31 October 2014. Under domestic scheme rules when a trigger is exceeded that tariff is reduced by 10%.

 

· None of the other technologies in the domestic scheme hit their individual triggers this quarter which means no further tariff reductions will be applied.

 

 

If you have any comments, questions or suggestions please email these to [email protected], marking your email (‘RHI – forecast’).”

 

 

 

Kind regards,

 

 

RHI Team

 

 

 

 

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Communications via the GSi may be automatically logged, monitored and/or recorded for legal purposes.

[Chalgravesteve]

The reductions to tariffs apply to new accreditations. Once you have been accredited and your start point tarrif is determined, it cannot be reduced. The more people/companies take up the scheme, the more the start point tarrif will drop.

[kevinjohnsonmbe]

The reductions to tariffs apply to new accreditations. Once you have been accredited and your start point tarrif is determined, it cannot be reduced. The more people/companies take up the scheme, the more the start point tarrif will drop.

 

 

Ah, right, understood!

[skyhuck]

The reductions to tariffs apply to new accreditations. Once you have been accredited and your start point tarrif is determined, it cannot be reduced. The more people/companies take up the scheme, the more the start point tarrif will drop.