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Biomass RHI drops again

Posted by Gabby Mallett on 26 June 2015 at 1:30 pm

Just as I write to tell you about the Feed-in Tariff (FiT) degression for solar PV the government announces a degression for the biomass section of the Renewable Heat Incentive (RHI). This time they say a ‘super trigger’ has been reached. 

The Department of Energy and Climate Change is using FiT and RHI payments to encourage homeowners (and others) to install renewable energy systems by subsidising them. The theory goes that if they subsidise them enough, lots of people will install, the market will mature, more installers will enter the market, prices will go down and then the government can reduce the subsidy. This has worked incredibly well for photovoltaics, where the cost of an installation is around half what it was when the FiT first came out. 

This degression is only going to affect biomass boilers and stoves, all the other tariff levels stay the same (that’s ground source heat pumps, solar thermal and air source heat pumps).

Currently the rate for biomass is 8.93p/kWh. From 1 July this will reduce to 7.14p/kWh. That’s a 20% reduction, and over the 7 years of guaranteed payments it could make quite a difference. Remember the tariff is based on the application submission date, so if you are sitting on your application you need to get it in as soon as possible. 

Photo: SuperHomes

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

More information about Biomass Boilers on YouGen

Find a Biomass Boiler installer.

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RHI rate for domestic biomass boilers falls again

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