Ground Source Heat Pump Association

MENU

BEIS

The BEIS section of the GOV.UK website publishes information on the RHI and other matters.

Degression of Commercial RHI for biomass

RHI Tariff History

BEIS has adopted a mechanism for budget management of RHI payments which involves "degression" of tariff rates for technologies that are absorbing more cash from the RHI budget than BEIS had envisaged.

This has led to dramatic degressions of the RHI tariffs for biomass boilers – as shown on the graph in red.

The tariffs for GSHPs started at a very low level until increased sharply in 2014 – as shown on the graph in green.

BEIS's policy for degression is explained here.

There is no risk of degression for RHI Tariffs for GSHPs

None of the other technologies are at risk of degression as the uptake of GSHPs and solar thermal panels is only a small fraction of what BEIS had anticipated.

The tariff for GSHP at 9.09p is now over three times that for small biomass.

Degression of Domestic RHI for biomass

RHI Domestic Tariff History

The first Domestic RHI degression was a 10% reduction in the tariff for biomass from 12.2p to 10.98p from 1 January 2015.

The second was a 20% reduction in the tariff for biomass from 10.98p to 8.93p from 1 April 2015.

The third was a 20% reduction in the tariff for biomass from 8.93 to 7.14p from 1 July 2015.

The fourth was a 10% reduction in the biomass tariff from 7.14 to 6.43p from 1 October 2015.

The fifth is a 10% reduction in the biomass tariff from 6.43 to 5.14p from 1 January 2016.

The sixth is a 10% reduction in the biomass tariff from 5.14 to 4.68p from 1 July 2016.

The seventh is a 10% reduction in the biomass tariff from 4.68 to 4.21 from 1 January 2017.

BEIS overuled its degression policy in Dec 2016 and fixed the biomass rate at 6.44 from 1 Jan 2017.

The eighth is a 10% reduction in the biomass tariff from 4.28 to 3.85 from 1 July 2017.

None of the other technologies are at risk of degression as the uptake of GSHPs and solar thermal panels is only a small fraction of what DECC had anticipated.

The tariff for GSHP at 19.86p is now more than three times that for biomass.

RHI accreditation statistics from Ofgem

RHI accreditation statistics from Ofgem.

 

Experienced Contractor

A ground source heat pump provides an excellent method for providing emission free heating and avoiding further rises in energy bills, as well as attracting RHI, but they must be installed by an experienced contractor for the full potential to be realised.

Please verify if your contractor is a member of the GSHP Association.

MENU