The ongoing availability and therefore price of fossil fuels is subject to much debate. What we do know however is that the Government is committed to reducing our reliance on these fuels and over the coming years will use a mixture of ‘carrot and stick’ to encourage businesses to switch to renewable energy.

The stick:

• The CCL (Climate Change Levy) is already added to the bills of businesses that use electricity, gas and LPG to heat their buildings.
• By 2018 all commercial property must have an energy performance certificate of E or better, otherwise the building cannot be sold or let.

The Carrot:

• For a limited period the Government are offering a very significant financial incentive to businesses that install a biomass heating system, known as the RHI.

The RHI (Renewable Heat Incentive) is a Government scheme that pays fixed rates to the user for every kWh of heat delivered into a building. The amount payable depends on the size of the boiler installed but once the boiler is commissioned it is fixed, index linked and paid quarterly for 20 years.

The current rates as of July 2014 are shown below:

 

What is the RHI? | Biomass Pellets

Mi-Generation undertakes the registration on your behalf. We have successfully secured the RHI for 100% of our customers. Initial application can take up to 6 months but are back dated to when the boiler was commissioned.

A biomass boiler is designed to burn solid fuels made from organic matter classed as biomass. It can heat the water that is used in your building for heating (including indoor swimming pools) and the water used for washing etc.

If your existing heating system uses electric or gas heaters it is still possible to consider biomass. A semi wet system can be fitted using pipes and blow heaters.

No. If you are on electric, Heating Oil or LPG you stand to make the most from switching, but currently the RHI makes it viable to switch from main gas too.

We calculate your kWh usage from your existing fuel bills (total annual spend and unit price). We allow for boiler efficiency and add in the CCL(see above) annual servicing costs and replacement costs to arrive at your current overall position.

We found that most customers just want ‘hassle free heat’; no hidden costs and visibility of prices for a five year period. We call this our ‘Heat Agreement’. If you buy the separate elements (boiler, pellets, servicing) from different companies there will be a lot of finger pointing if you are not achieving the savings you expected.

No, the kWh figure you are promised is at best a guess, whereas with our model you clearly know what you will be paying – for the next 5 years!

We charge a fixed price per kWh which includes all pellets, delivery, ash removal and servicing for as long as you continue to buy heat from us.

We chose our exclusive Romanian boilers for two simple reasons:

  1. They are very reliable but also very simple machines.
  2. To receive the RHI for 20 years the same boiler must be in place for that period. We know that we can replace any part on our boilers in situ, ensuring that the same boiler remains on site for the duration.

There are many more sophisticated and expensive boilers on the market, but the more bells and whistles, the greater the risk of a major fault requiring boiler replacement. This will result in the loss of RHI.

GPRS. Our boilers are remotely monitored to ensure that they are operating within expected parameters.

As a rough idea, a 100kW system can fit into a 10’ long by 8’ wide by 8’ high space, while a 200kW needs 20’ by 8’ x 8’. If you have an empty store room or outside building near to your boiler room this may be suitable. If existing space cannot be used we can provide the boilers in a shipping container that can be installed and plumbed into your existing system. Reasonable level empty space would need to be found near to your boiler room. The container can then be clad in a suitable material to fit in with its location.

The container will house the boiler(s), pellet hopper, auger and all additional tanks, cylinders and meters required for the installation. On the outside are the pipes through which the pellets are blown on delivery.

This will be kept to a minimum but is dependent on the complexity of the installation. We will endeavour to fit in with the dates and working hours that are the least intrusive.

Biomass boilers in containers are classed as permitted development, however in conservation areas or with listed buildings further consultation with the local authority is advised.

The height of the flue is dependent on the location of the container/boilers. If it is next to a building we take the flue higher than any windows so as to minimize the risk of smoke causing an issue.

Smoke is only generated for under a minute when the boiler fires up, and then it runs clear. Although visible it is filtered and complies with all emission regulations.

All ash generated is cleared away every few weeks by our service personnel when visiting site.

Mi-Generation manufacture pellets from biomass sourced locally to the pellet plants. This may be from wood processing industries or shredded tree waste from local estate management.

We only install pellet boilers as in our opinion they more reliable, efficient and the nearest in operation to a liquid fuel boiler.

In a lorry similar to an oil tank delivery lorry; pellets can be blown 30m so the boiler will need to be within 30m of an access track.

Delivery of pellets will be approximately once a month, maybe more in the depths of winter.

Few businesses have the capital available to fund the installation outright, so leasing is the normal solution. Lombard are our lease partners and they will fund up to 90% of the installation cost excluding the VAT. If you buy the installation 100% of the RHI goes to you.

Other options can be considered for no capital outlay but this is at the expense of surrendering some or all of the RHI.

In most cases Capital Grants or allowances cannot be claimed in addition to the RHI. We advise you to consult your accountants in order to check what can be utilized. At the moment, your AIA (Annual Investment Allowance) can be used to offset the cost of the installation while still claiming the RHI.

VAT will be payable at the rate applicable to your business. This is normally 20% unless you have charitable status and can show that the 5% rate applies to your business.

Mi-Generation offers highly competitive prices but in return looks to ensure our own outlay is covered at each stage of the installation. As such we ask for 30% on order, 60% on delivery of the containers or boilers to site, 8% on commissioning and the final 2% after a snagging allowance of 30 days.


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