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New RHI Tariff Adjustment

The regulatory body Ofgem has announced the revision of the Renewable Heat Incentive (RHI) tariffs, commencing from 1st April 2012. The good news is that the revision means that tariff levels have risen for biomass users.

The RHI tariff levels are based on any percentage increase or decrease in the retail prices index (RPI). The Office for national statistics recently reported that the increase in the RPI for 2011 was 4.8%, causing Ofgem to increase the RHI tariff.

Heat generated by eligible renewable technologies will be paid the 2011-2012 tariff up until 31st March, and then the new tariff will come into effect automatically on the 1st April 2012.

The table below shows the revised tariff levels:

Tariff Name Eligible Sizes Tier Previous tariff (pence/kWhth) New rounded tariff (pence/kWhth)
Small Commercial Biomass Less than 200 kWth Tier 1 7.9 8.3
    Tier 2 2 2.1
Medium Commercial Biomass 200 kWth and above; less than 1,000 kWth Tier 1 4.9 5.1
    Tier 2 2 2.1
Large Commercial Biomass 1,000 kWth and above N/A 1 1

For more information about the RHI and the tariff levels available, please call one of our friendly advisors on 0845 8943022.