Black Friday RHI Cuts
Whilst shoppers are frantically looking for the best Black Friday bargains, DECC have today announced cuts of their own. DECC have announced tariff reductions in both the commercial and domestic RHI schemes, effective the 1st January 2015.
A 10% degression in the RHI tariff for Domestic Biomass Plants will be applied in the New Year; this is due to the forecast expenditure for biomass amounting to £5.8m as of 31st October 2014. This is in excess of this quarter’s expenditure threshold for biomass of £4.2m. The revised tariff for RHI installations will be as follows:
| Category | Current Rate | Rate from 1st January 2015 |
|---|---|---|
| Small Domestic Biomass | 12.2p/kWh | 10.98p/kWh |
Regarding the Commercial RHI scheme, the tariff for Small Commercial Biomass will be reduced by 10%. Despite an anticipated growth of £8.7m in the quarter ending 31st October, Small Commercial Biomass grew by £11.2m. With growth exceeding the 50% rate necessary for a further 5% degression on the previous in October, the tariff has been reduced by 10%. Since the rate of growth amounted to 129% though, the Small Commercial Biomass category did not exceed the 150% growth rate, consequently avoiding a 20% degression. With other commercial tariffs remaining unaffected, the revised RHI tariff will be as follows:
| Tier | Current Rate | Rate from 1st January 2015 |
|---|---|---|
| 1 | 7.6p/kWh | 6.8p/kWh |
| 2 | 2.0p/kWh | 1.8p/kWh |
The next quarterly assessment day for both of the RHI streams will be on the 31st January 2015, whilst the subsequent quarterly forecast will be published by the 1st March 2015. Any cuts announced on this date will come into effect from the 1st April 2015.
Duncan Renewables will continue to regularly monitor any upcoming RHI data published by DECC and will bring you all of the latest RHI news as and when we receive it. In the meantime, with only a month before the cuts are introduced in Domestic Biomass Plants and Small Commercial Biomass, now is the time to get your installation completed and accredited!
For further information on incentives and the future of the RHI scheme, contact us now!
