RHI Consultation Outcome Published
The Government has published the outcome of the consultation on reforms to the RHI mechanism. If you would like to read the full consultation response please see the link at the foot of this article.
Here is a summary of the main outcomes for the Biomass sector:
All changes will be made effective as of 1 April 2017.
The three current non-domestic biomass tariff bands will be replaced with a single tariff, which will be subject to tiering. The Tier 1 tariff will be set at 2.91p/kWh and the Tier 2 tariff at 2.05p/kWh. Each plant will have a tier threshold equivalent to a 35% load factor equivalent to 3066 hours.
Domestic Scheme (all tariffs 16/17 prices):
• Heat demand limits will be introduced, to limit the level of annual heat demand in respect of which any household can receive support. The heat demand limits will be set at 20,000kWh for ASHPs, 25,000kWh for biomass boilers and stoves and 30,000kWh for GSHPs. However, this will not disqualify properties with higher heat demands from applying to the scheme. There will be no heat demand limit for solar thermal.
• The tariff for new biomass installations will be increased to 6.44p/kWh, the level available between October and December 2015, adjusted for inflation.
• Assignment of rights: will not be introduced in this package, instead further work will be done and changes made at a later date (TBC).
The Government say they will be carrying out further detailed work to assess whether wood fuel drying should remain an eligible heat use, due to concerns about the value for money of RHI support in this area.