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Changes to the Non – Domestic Renewable Heat Incentive (RHI):
There’s still high returns for Biomass CHP projects but chose your CHP technology wisely
The recent changes to the RHI Biomass CHP Tariff have altered payment amounts awarded to owners of biomass CHP installations.
While subsidies have been reduced, they are still attractive and guaranteed for 20 years and so CHP biomass projects remain a great investment.
However, to improve margins and fully maximise financial returns on your project, the CHP technology that you select to integrate with your biomass boiler should:
- Be simple to install and run for reduced build and maintenance costs
- Be competitively priced with no need for expensive extras such as superheaters
- Provide a supply of heat at a temperature suitable for your processes to comply with RHI rules
What do the RHI changes mean for biomass CHP projects?
There are still attractive incentives available for biomass CHP.
The electrical efficiency of CHP technology has been a key government concern for some time and they have now stipulated that 20% electrical efficiency is required to receive 100% of the CHP tariff.
Lower electrical efficiencies provide a lower tariff directly related to the efficiency.
Read more here.