Continued Strong Uptake of Small Commercial Biomass
The success of the biomass heat sector in the UK is gathering momentum with more than 10,000 installations in the below 200kW boiler size category. This high level of uptake means that the RHI payments for this size of boiler will again be reducing for new projects.
On Friday it was announced by DECC that following a quarterly review of the Non-Domestic RHI budget, the small commercial biomass tariff will be reduced by 15% for installations accredited on or after 1st April 2015.
The detailed explanation as to why this happened is that small commercial biomass growth over the quarter ending 31st Jan 2015 exceeded the 150% anticipated increase trigger, resulting in the small biomass tariff receiving a 10% technology trigger reduction. As the total scheme trigger was also hit, all technologies deploying above their individual technology trigger will be degressed by 5% in addition to any other degressions.
The tariff degression will affect projects with a biomass boiler capacity of less than 200kW. For these projects the RHI payment will reduce from 6.8p/kWh to 5.87p/kWh at Tier 1 and from 1.8p/kWh to 1.56p/kWh at Tier 2. Boiler sizes above 199kW are unaffected by this announcement.
The mechanism for cutting the RHI means that there will be ongoing quarterly reviews with the next potential cut being applied in July 2015.
If you would like to find out more about this announcement, please contact a member of our team on 01397 706412.