RHI tariff review for biomass, but not for biomethane and CHP


A new consultation has been unveiled by DECC that will look to review tariffs for the Renewable Heat Incentive.

Some technologies such as large scale biomass may see the tariff increased, but others such as biomethane and combined heat and power technology will not be included in the review.


However, the degression mechanism will be used to reduce tariffs if required, in order to ensure the Renewable Heat Incentive sticks to its budget.

Energy and Climate Change Minister Greg Barker said: “The Renewable Heat Incentive, which has been available for non domestic investors for over a year, is a key part of our approach to cutting carbon and driving forward the move to more sustainable low carbon heating alternatives.

“So far over 1,000 groups have got on board, and today we have outlined details of our tariff review to help more organisations to invest.”

ADBA chief executive Charlotte Morton welcomed that biomethane and biogas would not be included in the review.

She said: “DECC is right to exclude biomethane and biogas from the review of the RHI tariffs, as we have suggested to them since they announced the potential for reviews in January.

“There is a significant number of projects in the pipeline, and these do not need further reviews of the tariff levels, but rather consistency and certainty in Government policy.

“The Government’s focus should now be on issues which are holding back projects, such as the lack of preliminary accreditation for biomethane, the 200kWth limit on support for heat from biogas combustion, and clarity on overall RHI budgets after 2015.”