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Preparation will lead to renewable heating payback for businesses

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Harrogate based Tate Consulting says that many businesses are losing out on the Government’s renewable heating scheme through lack of proper auditing and preparation.

Renewable Heat Incentive (the RHI) is a payment system for the generation of heat from renewable energy sources, which was introduced in the United Kingdom in November 2011 for non-domestic users.

However, an Ofgem report showed that a shocking 95 per cent of applications were rejected in the first four months of the scheme, most owing to problems with supporting information. It’s a problem that looks set to get worse with the rolling out of the scheme to domestic systems in 2014.

During 2012, Tate Consulting worked closely with a number of businesses wishing to apply for the RHI, and all were in the five per cent which were ultimately successful in their application. They include Constable Burton Hall in Leyburn, North Yorkshire, designed by the celebrated architect John Carr and completed in 1768.  The Hall was one of the first approved schemes in the country.

Shane Tate said:

“The reason so many businesses have failed in their application  is because they haven’t understood the complexity and scale of the audit and assessments required before the application is made.

“By having an independent pre-install audit carried out, businesses will in the long-run save themselves a considerable amount of time and energy, and avoid the disappointment and cost of a failed application. A full audit gives the confidence that everything will comply with the requirements of the RHI, and will vastly improve the chances of a successful application.”

D’Arcy Wyvill of the Constable Burton Estate said:

“The application process is complex and we were aware that many were being rejected by Ofgem because the criteria had not been fully met. Tate Consulting’s professional and friendly service played an essential role in our application being successful first time – one of the first in the country to be so.”

The RHI aims to reduce CO2 emissions by approximately 60 million tonnes by 2020, helping to protect the environment from the effects of global warming and climate change. The Government is expected to pump up to £860m into the scheme, with the aim of renewable heating use rising from one per cent to 12 per cent of all energy produced.

Over a 20 year period adopters of renewable heating will receive payments each quarter for the amount of energy they produce. Tariffs are fixed from the start of the agreement and, with current tariff levels generous, early participants stand to gain the most financially.

Although the initial cost of the installation of the heating technology may be significant, the RHI payments will more than compensate for this over the course of the agreement. On average, it takes just over three years for an organisation switching from oil to wood pellets to recoup their installation money. Wood pellets (and related biomass products), ground source heat pumps and solar panels are all eligible for RHI payments.

Tate Consulting’s range of energy and sustainability services include low carbon building design, BREEAM Assessments, energy/sustainability assessments, renewable energy feasibility, design & implementation and energy management & strategic planning.

The firm has been creating low energy and carbon building for organisations including Asda for over a decade.

Constable Burton Hall
Constable Burton Hall

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