RHI tariff degression announcement for April 2017

The Department of Business, Energy and Industrial Strategy (BEIS) has today announced tariff degressions for the Non-Domestic Renewable Heat Incentive (RHI), which will come into effect on 1st April 2017.

As in previous quarters, tariffs have been reduced for small biomass, biomethane and all biogas:


Existing tariff (p/kWh)

% reduction being applied

New tariff for installations accredited on or after 1 April 2017 (p/kWh)


Small biomass

Tier 1: 2.95
Tier 2: 0.78


Tier 1: 2.85

Tier 2: 0.75



Tier 1: 3.89
Tier 2: 2.29
Tier 3: 1.76


Tier 1: 3.56
Tier 2: 2.09
Tier 3: 1.61


Small biogas





Medium biogas





Large biogas





All tariffs will be adjusted on 1st April in line with inflation. For installations accredited before April 2016, this will be in line with the Retail Price Index and for systems accredited after April 2016, this will be line with the Consumer Price Index.

There is no word from BEIS or Ofgem regarding the RHI reforms that are due to take effect in Spring 2017, and this announcement seems to suggest that the reforms will not be ready for 1st April. However, we fully expect the reforms to be put into place as soon as possible and, from the discussions we have had in recent weeks within the industry, late April seems to be the target.

For more information on the degression, see here and for more information on the RHI reforms read our previous blog.

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