No RHI degression in January

4 December 2017

According to the Department for Business, Energy & industrial Strategy (BEIS), the total forecast expenditure as at October 31, 2017 was £697 million. This represents the amount of tariff payments the BEIS anticipate it is committed to, based on application data up to October 31, 2017.

Although the figure of £697 million is below the total anticipated threshold of £728.55m for the year following October 31, 2017, it is above the expenditure threshold of £364.28m for this quarter, representing 50% of total anticipated expenditure. Being above the 50% total anticipated expenditure threshold can trigger additional tariff reductions for technologies whose estimated spend exceed their anticipated expenditure thresholds (as set out in regulations).

There will be no tariff reductions applied through degression on January 1, 2018 because none of the individual technology thresholds are exceeded. The next potential degressions will be applied on April 1, 2018.
All tariffs are adjusted automatically on April 1 each year in line with inflation.

From April 2017, tariffs will be adjusted by the retail prices index (RPI) for all installations accredited before April 1, 2016, and the consumer prices index (CPI) for all installations accredited on or after April 1, 2016.