Rainbow Heat and Power Explain What the January Degression Could Mean to You

7 October 2014

With the October degression behind us Rainbow Heat and Power are now looking to the proposed January degression of a suspected 20%. To help identify what this could mean to your biomass boiler project Rainbow Heat and Power have put together a guide.

Payments are made by the Government based on the amount of heat generated by you biomass boiler. This is funded with Taxpayer’s money; therefore the Government has to make sure that budgets are sustainable.

In April 2013 OFGEM implemented a transparent budget management mechanism into the Phase 1 Commercial RHI, called “Degression”, after a consultation period in 2012. A similar system will come into effect for the Phase 2 Domestic scheme, once it gathers momentum.

Through “Degression”, OFGEM will reduce the tariffs paid to new RHI recipients. This will ensure the scheme is sustainable for the 20 year period. With increased uptake of the scheme, the amount of payments made will increase beyond a certain level. These levels are known as “triggers”. Anyone already registered into the scheme will be unaffected.

If you would like to discuss the impact this could have on your proposed project, please contact us at Hello@Rainbowheatandpower.co.uk