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Updates to Renewable Heat Incentive (RHI) for Biomass (Sept 2017)
Following the Renewable Heat Incentive (RHI) consultation in 2016, changes to the RHI come into effect from September 20th 2017, some of which have implications for new biomass plant developments. The table below summarises the changes to biomass tariffs.
In a nutshell, tariffs for all sizes of biomass plant have been merged into a single, two-tier system. What does this mean for new biomass plant developments?
- These changes are favourable for new applications for biomass plants under constant operation; however,
- New applications for ‘Medium’ biomass plants to be used less consistently will take the biggest hit on possible tariff income, as the Tier 1 Tariff drops from 5.24 to 2.91 p/kWh.
Given the drop in the tariff for Medium sized biomass plants, operators looking to make an application for a plant within the 200kW to 1,000kW bracket should act fast to submit a duly made RHI application to Ofgem before 20th September 2017.
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