The recently renamed Department for Business, Energy & Industrial Strategy have released their latest quarterly forecasts this week for the uptake of technologies eligible for subsidy payments from the non-domestic Renewable Heat Incentive (RHI). These figures show that there will be a degression of five technology bands on 1 October 2016:

 

  • SMALL BIOMASS tariffs will be reduced by 5%
    • Tier 1 from 3.26p to 3.10p
    • Tier 2 from 0.86p to 0.82p

 

  • BIOMETHANE tariffs will be reduced by 5%
    • Tier 1 from 4.55p to 4.32p
    • Tier 2 from 2.67p to 2.54p
    • Tier 3 from 2.06p to 1.96p

 

  • All BIOGAS tariffs will be reduced by 25%
    • Small from 5.9p to 4.43p
    • Medium from 4.63p to 3.47p
    • Large from 1.73p to 1.3p

 

It is clear that biogas has received the most significant cut in support which will likely stall the uptake of small-scale wood gasification combined heat and power (CHP) generators.

 

All other technologies remain at their current tariff rates.

 

The graph below, published in the DBEIS forecasts, illustrates that the Medium Commercial Biomass tariff is getting closer to its expenditure threshold however it has not yet reached it and the rate of uptake slowed in July 2016:

 

It’s worth noting that the results of the RHI consultation ‘A Reformed and Refocused Scheme,’ which took place in April of this year, are still being analysed by the government. This consultation tabled substantial changes to both the domestic and the non-domestic RHI schemes from April 2017 so there is a considerable lack of certainty surrounding the technologies that will be available for RHI subsidies beyond March of next year. Biomass tariffs received for burning wood are expected to be cut significantly.

 

If you are considering installing any renewable source of heating then don’t hesitate to contact Pinnacle Power’s experienced team who can guide you in making the right decision and will deliver you the best possible solution.

 

A downloadable version of this document is available here.