DECC has announced that the small biomass tariff (for schemes under 200kWth) will be reduced by a further 10% from 1st October 2014. This brings Tier 1 payments to 7.6p/Kwh (from 8.4p/Kwh) and Tier 2 payments to 2.0p/Kwh (from 2.2p/Kwh). This announcement follows the publication of DECC’s quarterly reports for the RHI schemes. A drop of 5% was applied from July 2014.
As a reminder, the non-domestic RHI was launched in 2011 and is available to commercial, industrial, public sector, not for profit sector and district heating schemes. It is paid for 20 years to incentivise the use of heat produced from renewable sources in order to reduce carbon emissions and meet UK targets.
It would be wise for those considering a small non-domestic biomass installation to proceed with haste in order to take advantage of the current rates before further degression is applied.
It is worth noting that the domestic RHI remains unaffected.