Renewable Heat Incentive How to apply GSHPA, 22 October 2012 Barney Merrett Manager – Small & Medium Generation RHI,

1. Renewable Heat IncentiveHow to applyGSHPA, 22 October 2012Barney MerrettManager – Small & Medium GenerationRHI, Ofgem E-Serve

2. www.ofgem.gov.uk • Renewable Heat Incentive (RHI)  – what is it? • Levels of support provided by the RHI • Technology options • Eligible heat uses & metering • How to apply • What to be aware of • How to get through the accreditation process

3. www.ofgem.gov.uk • A world-first financial incentive to promote the generation of renewable heat • £860m for RHI over four years confirmed spend • Scheme funded through taxation, not a levy • Payments made quarterly over 20 year period on basis of metered heat generation (p/kWh) • Non-domestics only at present domestics to be included later • Estimated 1m participants by 2020 • Went live November 2011 • Ofgem responsible for administration – DECC responsible for policy

4. The RHI is a DECC initiative (£860M) • Ofgem E-Serve is the Administrator • Our role includes: • Handling enquiries • Evaluating eligibility and processing applications • Holding data • Making payments • Fraud and compliance • Auditing

5. Technologies currently supported www.ofgem.gov.uk • Solar thermal (below 200kWth) • Solid biomass, e.g. wood chip • Municipal Solid Waste • Biogas (below 200kWth) • Ground/water source heat pumps (not air) • Geothermal • Biomethane injection to the gas grid

7. Ofgem E-Serve’s role in the RHI www.ofgem.gov.uk RHI Process • The RHI is a DECC initiative (£860M) • Ofgem E-Serve is the Administrator • Our role includes: • Handling enquiries • Evaluating eligibility and processing applications • Holding data • Making payments • Fraud and compliance, including audits One Off Repeated Xx

8. Key eligibility criteria

9. Eligible heat uses

11. Other documentation you may need to apply… www.ofgem.gov.uk Documentation you may need… • Receipts and/or invoices relating to the installation of the equipment • Commissioning certificate • Commissioning report • Photograph of the installation clearly showing the serial number of the equipment, and output capacity • Evidence that any grant has been surrendered or repaid in full • Copy of meter Class 2 Measuring Instruments Directive (MID) certificate • Manufacturer’s technical specification for heat pump units to support COP claims Xx

12. Metering issues: • Types of meters • In pipe (mechanical, pressure) • Ultrasonic/electromagnetic • Eligibility • Evidence

13. Metering eligibility • At least one meter – heat or steam • Meter standards – MID Conformity, Class 2 Accuracy • Appropriately calibrated and installed • Meter placement • Schematic diagrams should be clear • Independent report on metering arrangements • Heat loss calculation – onlywhere metering is unduly burdensome

14. Metering Evidence • Measuring Instruments Directive (MID) Conformity • Evidence – “Certificates of Conformity” • NB: “Type Examination (‘B’) Certificate” is not enough... • Evidence of Accuracy • Class 2 • Photo (integrated/packaged heat meter) • Technical specifications or testing certificates for each component (separate components) • Independent Report on Metering Arrangements • Should be complete – and sufficiently detailed that we can rely on this as evidence

15. Simple or complex metering? Simple or Complex Metering? • Do any of following apply? • Heat delivered by steam • CHP • Heat used in more than one building • Ineligible heat uses on heating system Yes – one or more apply No – none apply • COMPLEX • Need to meter all of: • Heat generated by eligible installation • Total eligible use of heat on system • Heat generated by all plants on heating system • SIMPLE • Only need to meter: • Heat generated by eligible installation

16. Simple or complex metering? Simple or Complex Metering? • COMPLEX • “We need to know the fraction of heat used that is coming from the RHI-eligible installation – we can only pay for that fraction of the heat used for eligible purposes” SIMPLE “Just meter the heat generated – we can pay for all of it” Heat generated by RHI installation Heat generated by RHI installation Heat used for eligible purposes x Heat generated by all plant on the heating system

20. What are the regulations? • Regulation 8 relates to Heat Pumps • “Naturally occurring” • The “ground” (includes groundwater) or “surface water”. • COP of “at least 2.9” • Application process examples for heat pumps: • Demonstration of COP • Heat pumps with integrated immersion heaters • Other eligibility criteria in the wider regulations

21. Overview of the accreditation process

22. www.ofgem.gov.uk Application Process • Managed online via the RHI register • Each applications has 3 Levels of checks before ‘Delegated Authority’ sign off • Applies to all RHI applications ...even those with an MCS certificate? • Application review process terminology • Full and preliminary applications Xx

23. Timescales www.ofgem.gov.uk • No decision can be made until a full review has been conducted • Approximate timescale from submission to accreditation approval or rejection notification • Does not include time ‘with applicant’ • Good quality applications are accredited more quickly! Xx

24. www.ofgem.gov.uk Application Process Xx

25. www.ofgem.gov.uk Xx

26. Level 1 Checks www.ofgem.gov.uk • Quick ‘high level’ check • Sufficient detail in text based answers • All documents provided are what is required • Any grant related issues raised at this point • Potential outcomes: • Everything present and correct. Assign onwards for Level 2 review. • Information missing. Place ‘With Applicant’ and make contact to request further information required. Once this is submitted process as per (a). Xx

27. Level 2 Checks www.ofgem.gov.uk • Full eligibility check of an application. • Check on details of documentation. • Check answers provided. • Full check on metering schematic to review suitability on metering. • Potential outcomes: • Everything present and correct. Assign onwards for Level 3 review. • Information missing. Place ‘With Applicant’ and make contact via CRM system to request further information required. Once this is submitted process as per (a). Xx

28. Level 3 Checks www.ofgem.gov.uk • Provides quality assurance and checks consistency of findings during the level 2 review. • Review of any outstanding issues which could not be resolved at the Level 2 stage. • Any legal or technical expertise can be requested here if necessary • Ensure any ‘additional’ conditions are communicated • Special focus on metering schematic • Recommendation made to the delegated authority • Recommendation for approval • Recommendation for rejection Xx

29. Ofgem Checks www.ofgem.gov.uk Evidence to show ‘Installation’ is new: Invoices submitted for all components Heat meters MID & class 2: Specificevidence i.e. a Certificate or Photo Letter of Authority: To be written as per template (Guidance Note 2 or webpage) Schematic review: Correct & must include all necessary components Meter readings within effective date: Must be within 3 days of submission date Evidence of existence: Commissioning Report IMR (Independent Metering Report): Must be done by someone competent & using the required template Proof of Heat Pump COP >2.9 : Manufacturers information Solar thermal meter suitable for Glycol: Metering manual details

30. How to Apply for Accreditation www.ofgem.gov.uk

31. Top Tips:How to Ensure a Good Quality Application www.ofgem.gov.uk • Utilise guidance resources available ...if something is still not clear, just ask! • Have required documentation available • Missing (posted) documents cause delays • Detailed schematic containing all relevant information required • Illegible / confusing documents • Simple / complex metering • Complex metering requirements for CHP, heat by steam, ineligible purposes and; • Heat generated and used in > 1 building • Sufficient detail in text based questions • Remember your log in details / quote RHI number Xx

32. www.ofgem.gov.uk Direct RHI Register Link Please go to our website address: https://rhi.ofgem.gov.uk • Select option to ‘Create a new RHI Account’ Xx

33. The RHI team – Ready to help

34. Ofgem E-Serve: How we can help www.ofgem.gov.uk • Enquiries: • 0845 200 2122, RHI.Enquiry@Ofgem.gov.uk • Comprehensive published information; • Guidance on the Scheme • Volume 1 (Eligibility) • Volume 2 (Ongoing Obligations) • Supplementary fact sheets & FAQs • Online application process Xx

35. Metering Schematics www.ofgem.gov.uk Figure 1.8: Illustration of possible metering arrangement for a complex installation where decentralised ineligible plants (in this example, fossil fuel boilers) are located on secondary heating circuits in separate buildings. Note that the flow meter can be placed in either the flow or return pipe. Red lines denote the hot flow pipes, and blue lines indicate the cool return pipes. This schematic has been annotated with a key, a table of meter specifications, and building names/boundaries, as discussed in Section 1.4 of Volume One’s appendix Xx