RHI can significantly reduce a Hotel’s heating bills

Trying to reduce energy bills in a Hotel or Club is a challenge. Any business that involves members of the public staying overnight needs to keep rooms and public spaces at a comfortable temperature at all times, and provide sufficient hot water to cover high levels of demand in mornings and evenings. This can be expensive, however the introduction of a new incentive by the Government to encourage the uptake of renewable technologies could be the answer for many of these businesses.

The non-domestic Renewable Heat Incentive (RHI) makes a payment for every unit of heat produced through eligible renewable technologies. This payment is guaranteed, tax-free, and inflation linked for a period of 20 years. As a result Hotels installing an eligible technology will not only make savings on their current heating and how water bills but they will also receive generous payments from the Government. A number of Hotels which have already taken this up are finding that the payback on their investment can be under 6 years, resulting in virtually free heating for a further 14 years, a very attractive prospect for hotel owners.

Eligible technologies currently include ground and water source heat pumps, solar thermal panels and biomass systems. These technologies can be connected to your existing systems, which remain in place as a back-up or to boost the heating requirement when necessary. Some systems provide a base load for the building which reduces the fuel bill considerably, and they receive RHI payments on top.

The greatest savings are made when replacing oil, LPG or electrically driven heating systems, often saving as much as 70%. For mains gas the savings are less whilst prices remain low, however fuel prices only have an upward cost curve and as each increase occurs, so the savings increase at the same rate.

What type of system would suit your property? If your property has a lot of land nearby then ground source could be an option, if it is close to a lake, large pond or river then water source should be considered. There are many issues to be taken into consideration that are specific to Hotels and Clubs so to understand which renewable technology could apply to your building it is best to talk to the experts. The Renewable Design Company currently offers a free consultation service, which gives you an idea of what each technology can offer you, the costs and the paybacks. An example is shown below:

Hotel X has installed a 100kW heat pump using a nearby lake as the heat source. The annual costs are expected to be as follows:

Payback on capital investment for a heat pump…

Current oil bill
£20,000
Cost to run heat pump £9,600
Expected annual saving £10,400
RHI payments (2,400 heating hours) £11,200
Total income £21,600
Cost to install system £90,000
Payback on initial investment 4.2 years

Providing a further 15.8 years of savings and payments = £341,280

It is the ideal time to explore the renewable opportunity.

Contact details: www.therenewabledesigncompany.com

Email: julian@therenewabledesigncompany.com

Telephone: 01242 698410 or 07780 705260