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RHI degresses for first time

Latest figures from DECC show that biomethane RHI tariffs will degress by 10 per cent for the first time on 1 January 2015. However, DECC is currently reviewing RHI biomethane tariffs and an announcement is expected on new levels shortly.

Degression automatically reduces technology tariffs which are payable to new applicants by pre-set amounts but only where deployment levels are higher than required to meet the UK’s renewables target. It should be noted that degression will not apply to the tariffs received by plants which have accredited.

ADBA’s Chief Executive, Charlotte Morton, commented:

The RHI biomethane degression announced today reflects the surge in deployment we have seen in late 2014 – the biomethane market is finally taking off.

 

With the tariffs currently under review, it is important that DECC gives developers certainty on their proposals as soon as possible. Given the large amount of work which has gone into setting the tariffs on the basis of clear, strong evidence, this should take precedence over the degression mechanism.

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