RHI biomass tariffs face further cuts

Tariffs for biomass boilers under the UK's renewable heat incentive (RHI) domestic and non-domestic subsidy schemes will be cut from 1 January 2017.

Under the domestic RHI forecast biomass expenditure for 31 October 2016–30 October 2017 exceeds its threshold, meaning domestic biomass tariffs will be reduced by 10pc from 1 January.

And under the non-domestic RHI scheme the small biomass boiler tariff will be reduced by 5pc for installations accredited on or after 1 January.

The non-domestic small biomass boiler has been subject to a number of tariff degressions since January 2015. The degressions have resulted in slower growth rates for the category in an effort to control spending under the RHI. And medium biomass boiler growth now outpaces small boiler growth.

Biomass continues to be the most popular technology under the domestic and non-domestic RHI schemes. But potential changes to the RHI have been proposed in order to rebalance deployment of renewable heat technologies, potentially leading to a sharp fall in biomass boiler uptake.

The UK's Department for Business, Energy and Industrial Strategy (Beis) is making the final adjustments to the proposals, which are expected to be finalised and published before the end of this year.