The Renewable Energy Association (REA) updated its members yesterday with news of the Renewable Heat Incentive (RHI). According to the REA, the total forecast expenditure as at March 31, 2017 was £643.9m. This represents the amount of tariff payments the association anticipates it is committed to, based on application data up to March 31, 2017.
This figure of £643.9m is above the total anticipated expenditure threshold of £578.0m for the year following April 30, 2017 as well as above the threshold of £289.0m for this quarter, representing 50% of total anticipated expenditure.
As at March 31, 2017, forecast expenditure over the next 12 months for the small biomass tariff category was £147.4m. This is £15.1m below its individual technology threshold of £162.5m. As small biomass was subject to a 5% tariff reduction for the quarter ending January 31, 2017 due to the total scheme threshold being exceeded and exceeding its anticipated expenditure threshold, the next quarterly assessment will be based on the technology threshold. If forecast expenditure exceeds this threshold of £162.5m at April 30, 2017 there will be a 5% reduction. There will be an additional 5% reduction if the forecast total scheme expenditure remains above the total scheme threshold of £578.0m at April 30, 2017 and forecast expenditure for small biomass remains above its anticipated expenditure threshold of £135.4m.
As at March 31, 2017, forecast expenditure over the next 12 months for the medium biomass tariff category was £121.8m. This is £3.1m below its individual technology threshold of £124.9m; however it is £17.7m above its anticipated expenditure threshold of £104.1m for the subsequent year. Medium biomass will receive a 5% degression if forecast expenditure exceeds its technology threshold of £124.9m at 30 April, with an additional 5% if the forecast total scheme expenditure remains above the total scheme threshold of £578.0m at April 30, 2017 and forecast expenditure for medium biomass remains above its anticipated expenditure threshold of £104.1m.
Forecast expenditure for all other tariff categories as at March 31, 2017 are below their individual technology thresholds and anticipated expenditure levels for the quarter ending 30 April 2017.