Stroma Certification The Renewable Heat Incentive …files.stroma.com/members/ecobuild-2015/rhi-cpd.pdfPart of our 3 day Ecobuild CPD Programme Stroma Certification: Renewable Heat

© Stroma Certification 2015 | Version 1.0 © Stroma Certification 2015 | Version 1.0 | Page 1

Part of our 3 day Ecobuild CPD Programme Stroma Certification: Renewable Heat Incentive RHI

Stroma Certification

The Renewable Heat Incentive (RHI) Presented by Andy Parkin



Stroma Certification

Accessing the RHI supply chain Presented by Andy Parkin



Welcome

RHI

Welcome to Stroma’s CPD session detailing how you can

Access the RHI Supply Chain

During this presentation we will cover:

1. What the RHI is and getting certified to join the supply chain.

2. The opportunities available to you.

3. What are the rules and regulations?

4. How to process the RHI.

5. Benefits of becoming a member with Stroma.

6. What you can do today.



Stroma provides…

RHI

We want to put our members and tradespeople in the best possible

position to tap into this potential new business.

We do this by offering MCS and CPS schemes for RHI qualifying

measures.

We’re always improving – biomass MCS scheme approved Jan 2015

(wind turbines coming soon).

Low cost routes to certification with all the benefits included…



What the RHI is and how you can get involved.



RHI Recap

“A financial incentive encouraging the adoption of renewable technology in

homes & businesses to help the UK meet EU carbon reduction targets.”

Domestic RHI – financial support for eligible renewable heating system in a

single GB domestic property

The property can be on or off the gas grid

Set by DECC

Fixed income for every kilowatt hour of heat produced

Payments received for 7 years to heating system owner

Non-Domestic RHI – support for systems heating more than one dwelling

(including multiple flats in a single building)



The Big Challenge

Existing Domestic Buildings:

26 million homes

50% of homes aged 50+ years

20% over 100+ years

120,000 new homes built each year

Just 20,000 demolished

80%+ of homes in 2050 already been built

Will have to last 1,000 years at current clearance rate

37% fail Decent Homes Standard

7 million houses need to be refitted by 2020, which equates

to 1,700 homes a day, or one a minute.

Reduce our carbon by 80% by 2050



Technologies supported

The scheme supports the following technologies:

Air Source Heat Pumps (ASHP)

Ground Source Heat Pumps (GSHP)

Biomass

Solar Thermal



What opportunities are out there?



Who does this apply to?



Owner-occupiers

Private landlords

Registered Providers of Social Housing

Self-builders

Third-party owners of a heating system

Legacy applicants *

* As evidenced by the commissioning date on the MCS certificate. The commissioning date must be on or after 15th July

2009. MCS certificates must be generated within 10 working days of the commissioning date, according to the rules

governing the MCS database.

Who can apply?



What the rules and regulations are…



Incentives & Regulations

Code for Sustainable Homes

Feed in Tariff

Renewable Heat Incentive

Green Deal

Building Regulations

Planning

Localising

It’s a combination between new build regulation and

incentives for retrofitting existing properties



Part L Revisions

RHI deals with retrofitting existing build stock

Changes in Part L will ensure equal standards for new build property

Higher standards dictated by changes in Building Regulations



Domestic RHI in the Spring…

DECC released a new policy that comes into force in

Spring 2015

No Green Deal assessment for Registered Social Landlords

Introduction of “Eligible cooker stoves”

High temperature heat pumps introduced

MCS standards changed

Properties with multiple buildings – clarity about eligibility

Plus biomass changes due in Autumn 2015



Before applying for RHI support, all applicants must:

Carry out a Green Deal Assessment Report

(GDAR) to identify cost-effective energy

efficiency measures for the property

Install loft insulation (to 250mm) and cavity wall

insulation where recommended by the GDAR

Where the GDAR shows the required loft and

cavity wall insulation is yet to be installed, an

updated Energy Performance Certificate (EPC)

is obtained following installation, as proof of

installation (or valid evidence is provided proving

why the installation was not feasible)

Other eligibility requirements



How to process the RHI



Energy Efficiency Ratings



Tenure Distribution Number of dwellings (000)

Owner occupied 6,230

Private rented 1,484

Local authority 869

RSL 623

Total 9,206

Dwelling Age Number of dwellings (000)

Pre 1850 6,717

1850 to 1899 1,848

1900 to 1918 1,534

1919 to 1944 1,812

1945 to 1964 1,511

1965 to 1974 961

1975 to 1980 360

1981 to 1990 460

Post 1990 362

Total 9,206



Current domestic RHI tariff rates

Biomass Air source

heat

pumps

Ground

source

heat

pumps

Solar

thermal

Tariff (per

kilowatt

hour

renewable

heat)

12.2p 7.3p 18.8p 19.2p

Indicative rates only



The RHI support will be paid on each kWh of renewable heat the installation generates, for

seven years. To work out how much heat is generated, a deeming calculation will be used

that estimates the property’s expected annual heat usage. Multiplying the deemed figure

by the technology’s tariff rate will determine the annual payments.

Example of payment calculation – for illustrative purposes only, not intended to be

representative

Estimated heat use: 15,000kWh

Chosen technology: Biomass

Tariff: 12.2p/kWh

Total annual RHI entitlement = tariff x kWh renewable heat: £1830

How the payments work



The deeming calculation for biomass and heat pumps will be the estimated heat

use (in kWh) of a property after the installation of the required energy efficiency

measures.

Where an applicant already has these installed, the figure will be taken from the

Energy Performance Certificate (EPC) done as part of the Green Deal

Assessment.

Where the Assessment identifies that the measures still need to be put in place,

the figure will be taken from the updated EPC completed after their installation.

Self build applicants are not required to have a Green Deal Assessment,

the figures will be taken from the EPC required on completion of the property.



Worked example of payments for heat pumps – for illustrative purposes only

Total annual heating demand = 15,000kWh

Example 1: ASHP rated at 3* in the Heat Emitter Guide = SPF 2.7

Eligible heat demand = 15,000kWh x (1-1/2.7) = 9,444kWh

Total annual RHI payments = 9,444kWh x 7.3p/kWh = £689

Example 2: ASHP rated at 5* in the Heat Emitter Guide = SPF 3.4

Eligible heat demand = 15,000kWh x (1-1/3.4) = 10,588kWh

Total annual RHI payments = 10,588kWh x 7.3p/kWh = £773



Non-domestic RHI tariff rates

Biomass Air source

heat

pumps

Ground

source

heat

pumps

Solar

thermal

Tariff (per

kilowatt

hour

renewable

heat)

6.8p 2.5p 8.7p 10.0p

Indicative rates only



Similar to a service contract

Allows installers to fit advanced meters to new heating system

View measured data over the internet

When purchasing a Metering and Monitoring Service Package:

DECC offers an additional £230 per year for heat pumps

DECC offers an additional £200 per year for biomass-only boilers (not pellet

stoves with back boilers)

Reimburses householder for cost of package over 7 years RHI payments

Stops if service contract is terminated within 7 years

Payments for Metering and Monitoring Service Packages

will be available on a first come, first served

basis to 2,500 applicants in the first year of

the scheme, across biomass and heat

pump systems.

Metering and Monitoring Service Packages



RHI recipient gives meter readings to Ofgem

Ofgem calculates renewable heat generated and payment

Payments capped at the level of the estimated renewable heat usage from

the deeming calculation

Participants who have taken up a Metering and Monitoring Service

Package will need to notify Ofgem on a regular basis that the monitoring

system is still functional and in use to continue to qualify for the

additional payments.

The data collected by Metering and Monitoring Service Packages may be

required to be submitted to DECC, Ofgem or a nominated third party on

request, to inform DECCs understanding of in-situ performance of heat pumps

and biomass boilers.

Metering Process



Selected installations will have DECC’s own metering equipment fitted

so that the assumptions that are made about fuel bill savings and

renewable energy generation from installations can be checked.

Applicants need to agree on application to having metering

equipment fitted if the installation fitted is chosen as part of

DECC’s metering programme.

Being ‘meter-ready’



Leaving sufficient space for heat meters to be fitted in defined

locations

Installing isolation valves to avoid the need to drain systems when

fitting heat meters

Leaving the pipework accessible (i.e. not boxed in) to enable meters

to be fitted

Providing information about the installation (this will help DECC to

select appropriate sites for RHI metering)

DECC do not intend to make the data that is collected available for householders

and installers to view in the same way as a Metering and Monitoring Service

Package does. DECC intend to publish anonymised

outputs once at least a year’s worth of data has

been collected, checked and analysed.

Making an installation ‘meter-ready’



Benefits of Stroma Certification membership



We run an independent, industry-led

Certification scheme accredited by the

United Kingdom Accreditation Service (UKAS)

MCS certification bodies assess Microgeneration products and

installation businesses against consistent, robust standards

MCS members should comply with the Renewable Energy

Consumer Code (RECC)

What is the Microgeneration Certification Scheme (MCS)?



How to get involved

Stroma understands our members’ needs

All schemes require accreditation

Transferable

Skills

What do you need

to learn?

Working at

Height

Health

& Safety



The Process

On Site Assessment

Other requirements

RECC | Gemserve

Application Form

Membership

Quality Management

System Assessment



Good things about Stroma

IT’S EASY - Members usually find that getting registered

was less difficult than they feared

The Assessor is there to find evidence that you comply,

not to trip you up

Treat a “nonconformity” as something to improve,

a snagging list on the way to certification



• Per Bundle £240

• Application Fee £95

• Gemserve registration £110

• REAL assurance £220 dependent on

number of staff could be more

• Competent person scheme £Free

• Total cost with maximum discounts £

• All fees are subject to VAT

Certification fees



What you can do today



Apply online at stroma.com/membership

Chat to our team members about your options on 0845

621 11 11

Book a site assessment



Please email your questions to [email protected]

mailto:[email protected]



0845 621 11 11 [email protected]

www.stroma.com

Thank you for your time

mailto:[email protected]

Documents

Stroma Certification The Renewable Heat Incentive …files.stroma.com/members/ecobuild-2015/rhi-cpd.pdfPart of our 3 day Ecobuild CPD Programme Stroma Certification: Renewable Heat