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Renewable Heat Incentive: Calculation of the small to medium biomass tier 1 threshold


In response to recent lobbying from industry bodies, including Scottish Land & Estates, Ofgem have updated their interpretation of Tier 1 RHI payments for complex schemes. This is good news for members that have invested or intend to invest in biomass district heating schemes. 
Ofgem will now consider that the biomass tier 1 threshold will only be crossed when eligible heat output, rather than heat generated by the installation, has exceeded the tier threshold.  They intend to rectify any underpayments arising from this updated interpretation of Regulation 37 (9) and (10) as soon as possible and will be in touch with affected participants once they have had time to identify them and calculate payment adjustments. 
For any queries please contact Ofgem directly: This e-mail address is being protected from spambots. You need JavaScript enabled to view it / 0845 200 2122.

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