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Non-domestic RHI degression announced

DECC has published the fifth quarterly forecast for the non-domestic scheme along with an updated version of their non-domestic degression factsheet in order to prepare for changes that are being introduced to degression.  Crucially for Scottish Land & Estates’ members the small biomass tariff will be reduced by 5% from 1st July 2014.

The total forecast expenditure for the scheme is £106.6 million. The total estimated expenditure represents the amount DECC anticipate they will pay out between 30 April 2014 and 29 April 2015, based on current application data. The total forecast expenditure exceeds the 50% threshold which can and has triggered a tariff reduction (as set out in regulations):

  • The "50% trigger" for the scheme as a whole as at 30 April is £96.4m
  • The "100% trigger"[1] for the scheme as a whole as at 30 April is £192.8m.

Since the last quarterly announcement (published 28 February 2014), the total forecast expenditure estimate has been increasing at a higher rate than previously seen, with the average monthly growth almost tripling. This is due to an increase in applications and load factors.

As at 30 April 2014, only one technology tariff has exceeded its individual trigger:

  • Forecast spend over the next 12 months for small commercial biomass is £58.4m. This is £24.4m over its individual technology trigger.
  • Forecast spend for all other tariff categories shows these are below their individual tariff triggers for this quarter.

As small biomass has exceeded its individual trigger and the 50% total scheme trigger has also now been breached, small biomass tariffs will be reduced by 5% from 1st July 2014.

Upcoming changes In the December 2013 Government response document we advised of planned revisions to the triggers which control spending in the non-domestic scheme. These new triggers will apply to the 31st July 2014 assessment date, and will be taken into account when we publish the next quarterly announcement due by 1st September. The impact of these changes varies by technology and you are advised to refer to the response document for more detail, pages 70-77 and Table 8 in particular. For further detail of the changes and their impact, please see updated degression factsheet published on DECC’s website on the same page as this forecast. If you have any suggestions please email these to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , marking your email ('RHI - forecast')."


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