Medium biomass RHI degressions highly likely

BEIS has confirmed that the RHI regulatory reforms were not laid before Parliament and that the scheme will continue in its current form for now. This means that the 1st July 2017 degression assessment will be based on the January 2017 budget figures.

The latest monthly forecast figures show that the whole scheme is already over budget and the medium biomass expenditure is very close to hitting its degression trigger for the first time. Once the data from April and May is added to these figures, it seems likely that the trigger will be hit. This will result in a 10% degression for medium biomass (5% for the first medium biomass trigger to be hit + 5% as the whole scheme is over budget). If this is the case, then a 995kW biomass boiler system maximising its tier 1 could see a reduction of approximately £688 annually.

The degression announcement is expected at the end of May.


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