On the same day the Government announced its levels of FiTs it clarified a new set of proposals for the Renewable Heat Incentive for the non-domestic sector. Launching a consultation on a set of final ideas on how the scheme operates Climate Minister Greg Barker said the plan would offer the right support for industry.
To keep to the right budgets DECC is proposing the RHI is based on a flexible degression system, in other words cutting subsidy at certain points if the take up of the scheme proves very popular. Under this system tariffs would be reduced at a pre-determined trigger point.
Tests to see whether degression is needed would take place quarterly and if a tariff reduction is needed, one month’s notice would be given. Progress towards the trigger points for each technology and the scheme overall would be monitored throughout the year and data published monthly.
Greg Barker said the system would be fair and good for industry: “The Coalition is fully committed to driving forward investment in renewable heat, and our proposals will make sure we provide the right support for the industry. We want to continue helping renewable heat to grow and flourish, providing long term certainty for those who choose to invest in it.”
DECC has set out plans to introduce greater environmental sustainability into the RHI through the inclusion of standards on biomass sustainability and a clear process for how the air quality regime will work. It is also looking to simplify the metering arrangements for the RHI.
The consultation closes in September and details can be found on the DECC website.