RHI (Renewable Heat Incentive) UPDATE – 26 OCTOBER 2011

DECC was planning to launch the Renewable Heat Incentive (RHI) for non-domestic generators on 30 September 2011. State aid approval is a necessary condition for the scheme to go ahead. As part of that process, the European Commission expressed concerns that the large biomass tariff was set too high.

The Commission has now given State Aid approval to the RHI subject to the large biomass tariff being reduced from 2.7p per KWh to 1p per KWh. Revised regulations have now been re-laid in Parliament to reflect the required amendment to the tariff for large scale biomass. We hope to open the scheme to applications by the end of November 2011, subject to Parliamentary approval.

Source

Please note that the tariff reduction is only for “large biomass”. This is for installations above 1000 kW’s which may heat 50 or more houses e.g. a small village and larger e.g. Biomass power station