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How to ensure you get the best rate of Domestic RHI for biomass before 1 January 2015's fall

Posted by Cathy Debenham on 19 December 2014 at 9:28 am

The rate of domestic renewable heat incentive (DRHI) for biomass boilers and stoves will decrease from 12.2p per kWh to 10.98p for all installations made on or after 1 January 2015.

This is because, just six months after the DRHI launched, forecast expenditure for biomass has exceeded the government's maximum tolerable expenditure threshold and triggered a planned degression of 10%. Spending is expected to be £5.82m - somewhat above the expenditure threshold for biomass of £4.2m for the quarter ending on 31 October.  

To make sure that you get the current (higher) rate of renewable heat incentive you must submit your online application form for before midnight on 31 December 2014. If it goes to manual review, don't panic. As long as your application is successful you will get the higher rate even if the review goes some way into January. Your payments will start from the day you clicked submit.

Whilst there has been growth across all renewable heat technologies compared to the all except biomass remain well below their triggers for this quarterly assessment.

Renewable heat incentive degression triggers
Technology Max spend

Forecast spend
to 31/10/4

Air source heat pumps £4.2m £0.83m
Biomass £4.2m £5.82m
Ground source heat pumps £4.2m £0.77m
Solar thermal £2.1m £0.18m

The expenditure forecasts only include applications for systems installed on or after 9 April 2014, as only these installations are counted towards the degression triggers.

Photo: CAFNR

More information about Biomass Boilers on YouGen.

More information about the Renewable Heat Incentive (RHI) on YouGen.

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