The future of the Renewable Heat Incentive (RHI) Scheme

Posted by on Dec 12, 2015 in Biomass Boilers, Latest News, RHI, Slider | 0 comments

This article appeared on the Farm Energy Centre on the 30th November 2015.  You can view the full article on the Farm Energy Centre Website.

DECC has today announced degressions for the Non-Domestic RHI scheme that will be effective from January 2016. Small biomass under 200kW will see another 10% drop as well as biomethane injection.

This is good news for other technologies, particularly the medium sized biomass (200kW – 1MW), where there are no changes to the tariffs for the forthcoming quarter, however despite REA’s meeting with DECC last week, the future is still a little uncertain for the RHI scheme.

Here is REA’s summary of what they learned from DECC, further to the Chancellor’s autumn statement:

  • For the forthcoming financial year the RHI scheme will remain open to new applicants.
  • Other than some minor amendments, it will be in its current form.
  • DECC will manage costs over the year by introducing an interim cap with new degression triggers to be taken to Parliament in the early part of 2016, meaning that the trigger levels from April 2016 are unknown.

The overall aim of the RHI reform is to improve value for money, reduce costs and improve budget management. Exactly how this will be done remains to be seen, but there are plans for DECC to consult with the industry over the coming weeks.

We’ll keep listening and watching out for more details as they happen.

The DECC’s full degression announcement is here.

ARG Biomass is a specialist supplier of straw fired boilers on industrial, agricultural and horticultural sites. Our expertise lies in setting up RHI eligible installations, maximising return on investment. For information, advice or to discuss your specific requirements, please contact us.

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