Changes to Renewable Heat Incentive Tariff

Non-Domestic Renewable Heat Incentive (RHI) tariffs are changing from 20th September 2017 as a direct result of last year’s consultation.

The changes will merge existing tariff bands for all solid biomass sizes; ‘small’ (less than 200kW), ‘medium’ (between 200kW and 1MW) and ‘large’ (1MW+) to create a single two-tier tariff band for all biomass plants.

These amendments are the first part of RHI reforms announced by the Department of Business, Energy and Industrial Strategy (BEIS) in December 2016 and Ofgem have released a fact sheet about the changes.

Access the Fact Sheet

About the Renewable Heat Incentive tariff changes

Renewable Heat Incentive TariffOrganisations with ‘medium’ sized systems between 200kWth and 1MWth used for comfort heating would be well advised to have their applications submitted by 20th September. The new tariffs will be more advantageous to process plants with the constant operation, so no rush for them. As this is a drastic change, Ofgem will be wary of applications being submitted before they are ready so expect all applications to be subject to a thorough review with the option of a site audit before accreditation. If you need help applying for the incentive TEAM’s RHI Support Service can help.

Potentially, participants could get the submission in on time and then be required to submit an Independent Report on Metering Arrangements (IRMA) – TEAM’s RHI Support Service can help with this.

If you are already on the scheme and have a large biomass system with a date of accreditation between 14th December 2016 and 19th September 2017, your tariff will be automatically uplifted from 20th September 2017.

Renewable Heat Incentive Tariff – Table of Changes

 Technology Type Tariffs as of 1 Jul 17 (p/kWh) Tariffs as of 20 Sep 17 (p/kWh)
 Tier 1 Tier 2 Threshold Tier 1 Tier 2 Threshold
 Small Biomass 2.71 0.71 15% 2.96 2.08 35%
 Medium Biomass 4.79 2.08 15% 2.96 2.08 35%
 Large BiomassFlat rate of 2.08 2.96 2.08 35%
Posted by TEAM on 13 September 2017
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