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This document sets out the government’s response to the consultation on changes to the support for biomass-CHP plant offered under the RHI scheme. The consultation sought views on reintroducing a 20% power efficiency requirement for new Combined Heat and Power (CHP) plant on the Non-domestic RHI.
The Non-domestic Renewable Heat Incentive (RHI) was introduced to bridge the gap between the cost of renewable heating systems and conventional alternatives. The government is keen to ensure that the Non-domestic RHI continues to contribute to both our decarbonisation targets and to the UK’s renewable energy target whilst ensuring that the scheme offers good value for money.
In August 2016 the government amended the terms of support for biomass-CHP under the RHI to introduce a power efficiency requirement of 20%. From then on, new plant with a power efficiency of less than 20% would receive a scaled back level of support. A proportion of their eligible heat use would be supported under the biomass-CHP tariff, with the remainder supported under the biomass tariff. From 1 January 2017 this requirement was relaxed to a 10% power efficiency requirement for a transitional period.
This consultation proposes a return to a 20% power efficiency requirement for new plant, and seeks stakeholder views on this proposal.