The Department of Energy and Climate Change (DECC) has announced updates to the non-domestic Renewable Heat Incentive (RHI) scheme following a consultation which closed in September 2012.
Under the updated policy published yesterday, DECC has set out a fixed annual budget for each year of the RHI and intends to introduce a degression based approach which will see tariffs available to new applicants being gradually reduced if uptake of the technologies supported under the RHI is greater than forecast. Monthly updates on progress towards triggers will be published online and one month’s notice will be given before any reductions are made to the tariffs for new applicants.
Sustainability requirements will be introduced for all existing and new installations using solid biomass as a feedstock, while changes to both air quality and to simplify heat metering will be in place no later than the end of 2013 subject to parliamentary approval and will apply to all new installations only.
DECC is also planning to consult in the Spring on proposed tariff levels that will apply from 2014 onwards. We need to go through these proposals with a fine-tooth comb but our initial thoughts are that these are broadly positive for the sector.