On July 20th, the Department of Energy and Climate Change announced proposals to consult upon potential changes to "improve the performance and manage the future budget of the non-domestic RHI scheme".
Aiming to provide more certainty to the Renewable Heat Incentive market, any changes would affect both the biomass heating and the heat pump heating industry sectors.
The DECC is proposing to introduce a flexible degression based system, where tariffs would be reduced for new applicants, dependent on the uptake of renewable heating technologies approaching pre-determined trigger-points.
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.
DECC have concluded that the consultations end on the 14th September this year.