DECC have released the latest forecast for estimated, committed Renewable Heat Incentive (RHI) expenditure for the next 12 months.
The ‘Biogas’ data from DECC’s forecast is applicable to AD clients, and it suggests that the Biogas combustion tariff will decrease by a minimum of 5% from 1 April 2016 and possibly by as much as 10%.
Biomethane tariffs remain heavily oversubscribed; last quarter the rate decrease was 5%, this time, it will be 10%.
DECC won’t make the official announcement on tariff reductions until the end of the month, but the writing is already on the wall.
The bottom line is that if you have an RHI application in progress, or intend on applying, you be wise to meet the deadline (31st March 2016) before the tariff reduces.
DECC’s full forecast can be viewed here.