DECC confirms there will be no RHI tariff reduction for biomass boilers

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We're pleased to see the announcement from DECC confirming none of the RHI tariffs for biomass boilers will be reduced on April 1, 2014.

DECC has announced its quarterly assessment of the projected RHI spend as of January 31, 2014.

There was a question of whether small biomass (sub 200kWth) would have its tariff reduced, seeing that it hit its individual trigger (the forecasted spend is £39.1m, which is £8.2m over its individual technology trigger).

However, as the total projected spend remained below the ‘50% trigger’ of £83.2m, no RHI tariffs will be reduced on April 1, 2014.

It is worth noticing that the forecast spend over the next 12 months for medium commercial biomass boilers (200kW-1MW) are lower than those published in the last quarterly announcement.

This is caused by an increase in the number of meter readings submitted for the warmer summer months, where heating systems are generally used less, thus lowering the average load factors which are used to estimate the forecast expenditure. A mild winter also contributed to the lower load factors.

For a more detail view of forecast RHI spends and triggers, have a look at the latest quarterly forecast spreadsheet, available here.

Contact us if you would like to find out what returns you may see from your investment in a biomass boiler heating system. Alternatively, feel free to fill in the form below and we'll contact you directly.

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