Non-domestic RHI degression announced
The small biomass tariff will be reduced by 15% from 1 April 2015.
Last quarter, the small biomass tariff was subject to a 10% reduction (which included a 5% reduction due to the total trigger being hit). The growth trigger required for a subsequent degression for the quarter ending 31 January 2015 is £4.4m (50% of anticipated increase) for a 5% reduction and £13.1m (150% of anticipated increase) for a 10% reduction. Small biomass growth over this quarter was £25.8m. Therefore small biomass will receive a 10% technology trigger reduction.
However, as the total trigger (roughly the RHI budget) is hit, every technology deploying above its technology trigger will be degressed 5% in addition to any other degressions. The small biomass tariff will therefore be reduced by 15% from 1 April 2015:
The tariff listed above includes 1.6% uplift in line with the Retail Price Index (RPI).
The tariff levels will come into effect 1 April 2015.
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