16th December 2016

Non-Domestic RHI Consultation Summary December 2016

Following the announcement from BEIS on 14th December regarding the changes to the RHI (Renewable Heat Incentive) scheme, we have produced a summary of what the changes entail:



Tariff Guarantees:
• Tariff guarantees (Pre-accreditation) will be introduced for biogas plants with capacities greater than 600kWth.
• Tariff guarantees will also apply to all biomethane plants regardless of capacity.



Feedstock Requirement:
• From spring 2017, new plants will only be eligible for RHI support if at least 50% of the biogas is derived from feedstocks that are wastes or residues. Where the amount of biogas generated from non-waste/residue feedstock (Such as crop based feedstock) exceeds the 50% threshold, the excess generated above this limit would not be eligible for RHI support.



Restrictions on Drying:
• Effective from the date of implementation, the drying of digestate will no longer be considered eligible for RHI support.
• Also being considered for future implementation is a restriction to the eligibility of wood fuel drying (Such as drying wood chip for use in Biomass).



• For all new applicants to the RHI scheme from December 2016 that comply with the new feedstock requirement and digestate drying rules, the tariff rates will remain at the current rates of:
4.43 p/kW for sub 200kWth                
3.47 p/kW for 200 to 600kWth
1.30 p/kW for 600kW and above
• For applicants that do not comply with the above requirements but look to apply to the scheme before the implementation of such rules, these applications will be subject to the current tariff degression trajectory (25% degression from current levels, effective from 1st January 2017).



Degression Triggers:
From spring 2017, each biogas group will be split separately to how they are currently grouped. Small to medium biogas plants will be grouped under one category, and large biogas shall be grouped with biomethane in another. This should create a more fair representation of growth within each new category.




If you would like more information, please contact our Policy Expert, Carys Bate via the following email address: carys.bate@ad4energy.com

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