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Government gears for launch of ‘business friendly’ Renewable Heating Incentive

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The price of energy increased notably over 2013’s winter months – whilst energy providers profited, many business and home owners buckled under the burden of hefty payments. In reaction, the government has put plans in action for the late-Spring launch of a Renewable Heating Incentive (RHI) aimed at cutting energy bills as well as CO2 emissions (the heat used in homes, public buildings, businesses and factories account for half of all the UK’s carbon emissions).

The scheme (covering England, Scotland and Wales) is an effort to diversify the UK’s energy supply in the face of the threats and challenges emanating from climate change; it will provide long term support for renewable heat technologies, from ground-source heat pumps to wood-chip boilers. And the RHI has business owners (both big and small) in mind. Not only is the scheme environmentally friendly (using solid biomass in place of fossil fuel can reduce harmful CO2 emissions by as much as 90 per cent) but it is also financially attractive, flexible and on a practical level, relatively easy to build into a building’s existing energy arrangement.

So, the question: if you buy into the RHI, what does it mean for your business? – How will it save your business money? And what practical steps need to be taken to implement the scheme?

Mike Hefford, Head of Renewable Technologies at Remeha Commercial, says that biomass heating offers significant fuel cost savings of between 50 to 80 per cent when used as an alternative to heating oil, LPG or electric systems. Hefford explains as follows:

Commercial end users can benefit from up to 8.8p/kWh of heat generated, depending on the size of the biomass system. The rate for large biomass plants of greater than 1MW has also recently doubled to 2p/kWh (although payments of other sizes remain unchanged). Tariffs for domestic biomass have also been confirmed at 12.2p/kWh from spring 2014. Payments, administered by Ofgem and made quarterly over a 20-year period, equate to around 15 to 20 per cent return on investment. The Government has recently introduced a degression mechanism that will trigger an automatic fall in tariff levels for biomass installation smaller than 1MWh once 120% of expected deployment is reached. This does not apply to biomass installations of 1MWh but, under the RHI, this capacity and above will be required to report quarterly on the sustainability of their biomass feedstock.

In translation: the RHI implies lower operational costs and savings for faster payback. Hefford argues that of all the possible renewable heating solutions for commercial and industrial applications, biomass is likely to bring the most important benefits and savings. Something that must, however, be noted that switching to a renewable heating system will cost you money. According to Hefford, while biomass heating is a mature, proven technology, as with all technologies it pays to employ the experts to design the appropriate low carbon system for your particular needs. In light of which, perhaps you’re a business or organisation that is interested in taking part in the scheme but are unable to raise the initial capital cost?

Firstly, the point of the RHI is to support the industrial and commercial sectors as it is these sectors provide the most cost effective way of increasing renewable heat. It is therefore crucial that renewable heat becomes a viable option for businesses. The Government expects that the RHI will stimulate the market to provide a number of different financing options, which could cover both the capital costs (e.g. cost of installing the equipment) and ongoing operational costs (e.g. fuel costs) for the lifetime of the installation. Possible finance models include:

  • Energy suppliers – providing renewable heating as an option alongside their current package of services.
  • Banks and other lenders – lenders to finance upfront capital costs for an assigned proportion of the RHI through a contractual arrangement.
  • Energy service companies – a combination of local authority, community and energy company expertise in a body that provides a finance package to deliver renewable heat technologies using RHI payments.
  • Public sector financing – local authorities are potentially able to take advantage of economies of scale.

Applications to be part of the Non-Domestic Renewable Heat Incentive, and for financial support, should be made online (to Ofgem) and can take up to six weeks to approve, depending on the complexity of the proposed heating installation. – CLICK HERE for more information, and to apply for the RHI.

If you’d like further information on the Renewable heating Initiative, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc.

Sources: Gov.uk – “Renewable Heat Incentive”; Remeha.co.uk – “Turning up the heat for biomass”

Five energy-saving tips that will help your business cut costs this winter

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The recently announced energy price hikes have sent Britons into a state of slight panic as homeowners and commercial enterprises rack their brains for ideas on how to keep warm without bankrupting budgets. In fact, new research by Bristol-based sustainability company Sustain has revealed that 90 per cent of British consumers are concerned about increasing energy prices this winter.

And if you’re a business owner the stress is likely to be more severe: taking measures to curb costs (like simply turning heating off and throwing on a few jerseys) is just not feasible because if your office is cold, productivity will decrease – the same goes for factories and warehouses; and when it comes to restaurants, shops, hotels or churches, if people don’t feel that warm blast of air emanating from the doors of your establishment, chances are that your enterprise will be a few customers short.

So, the heat has got to be on and the money has got to be spent.

But there are ways to do so efficiently! Here are five tips on what you can do to save your business money this winter:

      • Control your heating system: turn heating (as well as other energy-consuming appliances – lights) off when premises aren’t in use, and reduce heating in areas that aren’t people populated.
      • Contain heat: when heating is on, make sure windows are closed and when the sun goes down close blinds and curtains to prevent heat from escaping through the windows.
      • Consider insulation: insulating windows, walls, pipes and boilers might be an initial expense but could save you money in the long term. There are also some local authorities that offer incentives for businesses that wish to insulate their premises – definitely something worth checking out if you’re keen on the idea.
      • Service boiler system and replace old equipment: inefficient heating equipment will cost your business. Old boilers are reportedly 65 to 70 per cent efficient; a new boiler should up efficiency levels to 90 per cent. There are government schemes (the Green Dead and the Enhanced Capital Allowances scheme) that offer incentives for the installation of energy efficient equipment. Otherwise, just make sure that your boiler is serviced yearly, enabling your heating contractor to find and fix any faults.
      • Position thermostats with care: in other words, not in draughty areas or areas with uneven temperatures (in direct sunlight or near machinery that gives off heat).

Reducing heating by a mere 1 per cent can cut costs by 10 per cent, which is a great incentive for further advice on how your business can get the best out of its boiler.

For more information, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc

Businesses cut water bills by recycling ‘greywater’ with new product

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Statistics say that water bills are rising 5.5 per cent each year, for both consumers and businesses – which is why more and more commercial enterprises are considering ‘greywater’ recycling as a way of reducing water bills.

‘Greywater’ is the water that comes from sinks, showers, tubs, and washing machines, which usually contains traces of dirt, food, grease, hair, and certain household cleaning products. Greywater is not water that comes from the toilet or has come into contact with faecal matter from nappies (for example) and the like. In other words, it’s water that appears dirty but is ‘safe’ to use for irrigation purposes – in soil and on plants (as long as there is nothing toxic in the water – bleach, shampoo, bath salts etc.).

Which is great but if you’re running a business it’s not always easy to ensure that chemicals are kept out of the water for the sake of recyclability – especially if you’re running a hotel or B&B, or perhaps managing a care facility, restaurant or hair salon. And if you are able to control what goes down your business sink, maybe you have no garden in which to pump the used water. But there is another way to recycle greywater, other than for irrigation purposes – and that’s to use it in flushing toilets.

Water and heat recycling company Reaqua Systems has a product range that collects waste-water (greywater) from sinks, baths and showers and recycles it for use in flushing toilets – thus reducing water consumption by 30 per cent!

Reaqua Systems’ reAqua Unit takes all greywater waste and redirects it through a compact reAqua filtration unit, treating it with a proprietary disinfectant and then sending it on (via pipe) to supply all flushing water needs for multiple toilets. If one toilet is specified, gravity feed is sufficient. If two or more are connected, an electrically pumped feed is provided within the unit.

And if you feel like saving your business even more money, the reAqua+ Unit not only recycles greywater (thus saving on water bills) but reduces energy bills by recycling heat. The unit recovers the heat from the bath and shower water used, and transfers it to the building’s central heating system. The installation setup is similar, but it includes the addition of a heat exchanger located in the greywater storage tank. Recovered heat is transferred to the cold feed of a combi-boiler or hot water cylinder, reducing demand on the existing central-heating system.

The filter bag and proprietary disinfectant liquid that are installed with the units will need to be replaced annually (under normal circumstances) – which can be done at the same time as an annual service and should cost no more than £20.

With the energy and water recycling, your business is looking a 50 per cent bill reduction, which is a huge money saver!

To find out more about these products, visit Reaquasystems.com and chat to your plumber about installation probability and costs.

For more information, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc