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Notice

Green Gas Support Scheme: budget management

Details of the budget management mechanisms of the Green Gas Support Scheme.

Updates to this page

From:
Department for Energy Security and Net Zero
Published:
26 July 2021
Last updated:
17 December 2025
Show all updates

  1. Published GGSS budget caps, production factors, and inflation forecasts for 2026-2027.

  2. New regulations are expected to come into effect in early 2026 to extend the commissioning window of the Green Gas Support Scheme (GGSS) to 31 March 2030. Subject to parliamentary scrutiny, applicants have an additional two-years to commission plants and begin injecting biomethane into the gas grid.

  3. We will not publish a Call for Evidence for the 2025 Annual Tariff Review (ATR). The Review will be informed by the 2025 Biomethane Cost Survey, plus wider market intelligence and evidence gathered through regular stakeholder engagement.

  4. Added GGSS budget caps, production factors, and inflation forecasts for 2025-2026.

  5. The degression thresholds in the Budget Management guidance have been amended to reflect the new GGSS closure date of 31 March 2028.

  6. New regulations on the Green Gas Support Scheme which come into effect today (4 June) extend the scheme to 31 March 2028 (previously 30 November 2025).

  7. We have published new GGSS budget caps, production factors and inflation forecast effective from 1 April 2024, and made updates to the GGSS budget management guidance.

  8. We have published new GGSS budget caps, production factors and inflation forecast effective from 1 April 2023, and made updates to the GGSS budget management guidance. 

  9. Budget caps (Table 4) and inflation forecasts (Table 3) have been extended to cover scheme financial years 2026/2027 and 2027/2028, following a regulatory amendment (Statutory Instrument 2022 No.592) which took effect on 1 July 2020.

  10. We have improved the explanation of GGSS budget management mechanisms, and added links to the new Green Gas Support Scheme (GGSS): expenditure forecast statements and tariff change notices page (https://www.gov.uk/government/publications/green-gas-support-scheme-ggss-expenditure-forecast-statements-and-tariff-change-notices).

  11. Inflation estimate for financial year 2025 / 2026 added to table 3.

  12. Updated alongside launch of GGSS.

  13. First published.

Applies to England, Scotland and Wales

Documents

Green Gas Support Scheme: budget management guidance

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GGSS budget caps, production factors, and inflation forecasts for 2026-2027

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GGSS budget caps, production factors, and inflation forecasts for 2025-2026

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GGSS budget caps, production factors, and inflation forecasts for 2024-2025

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GGSS budget caps, production factors, and inflation forecasts for 2023-2024

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Details

Update: 10 December 2025

New regulations are expected to come into effect in early 2026 to extend the commissioning deadline of the Green Gas Support Scheme (GGSS) from 31 March 2028 to 31 March 2030. While this extension will be subject to the standard parliamentary scrutiny, the aim is to provide new applicants with an additional two years to commission plants, begin injecting biomethane into the gas grid and make their stage 3 application for GGSS registration. The proposed extension aims to maximise deployment and the associated carbon savings that can be achieved through the scheme. 

The deadline for submitting new stage 1 applications will remain 31 March 2028. Under the current regulations the standard tariff lifetime is 15 years but if participants commission beyond 31 March 2028, their tariff length will not be extended and will end by 31 March 2043. For example, if an applicant has a commissioning date of 31 March 2030 (the final date possible under the extension), they would receive a tariff lifetime of 13 years.

Applicants who applied before 10 December 2025 will need to retain their original commissioning date. If this is not achievable, they may choose to withdraw and submit a new application. Please note that re-entry will be subject to the scheme’s eligibility criteria and conditions at the time of reapplication and is not guaranteed.

Applicants who submit stage 1 applications on or after 10 December 2025, but before the proposed regulations come into effect, must apply with a commissioning date no later than 31 March 2028. If the commissioning deadline becomes unachievable for an applicant in this category after the proposed regulations come into force, the date may be revised to a later date (no later than 31 March 2030) without the applicant needing to withdraw or reapply, provided they meet the necessary requirements under the regulations.

The Green Gas Support Scheme (GGSS) has several mechanisms to manage budgets and ensure value for money, while maintaining investor confidence to encourage deployment. These were set out in the March 2021 government response to our consultation.

Regulations came into effect on 4 June 2024 to extend the GGSS to 31 March 2028 (previously 30 November 2025).

These documents provide more detail for applicants and investors on:

  • the budget caps
  • the degression process
  • the Annual Tariff Review
  • the Green Gas Levy

See also details of the Green Gas Levy (GGL), which will fund the GGSS.

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