RHI update

We were very shocked this morning, when we looked at the date of our last blog – May 2016 arrrggghhh!!

We have been so busy that we have not had time to think, more later on what we have been up to but, more importantly for now, up to date news on the Domestic RHI.

Ofgem published a factsheet in December 2016 entitled “Important Changes to the RHI”. The factsheet floated the potential idea of an uplift in the tariff and also a cap in the kWh to come in to force in Spring of this year. The current tariff is 4.21p per kWh – this is the figure that you would receive if you installed a domestic biomass plant today. What the government are proposing is an uplift to 6.44p per kWh in Spring but also a cap at 25,000 kWh.

We have just come off the phone with Ofgem and, what is interesting, is that the uplift will be automatic, so, if you were to instal today (for example) you would automatically receive the uplifted amount if it comes into force in Spring BUT you would not receive the cap, unless you had installed after the date when any potential cap was announced.

It would seem to us that now would be a good time to instal a biomass system, if you are thinking of it, because there is a short time frame in which you can potentially reap the benefits of a sizeable uplift in tariff, without having to bear the burden of any potential caps its a – win/win scenario but hurry, it won’t be around for long!