The Renewable Heat Incentive (RHI) has finally been approved by the European Commission (EC), paving the way for its release before the end of November.

The latest approved RHI has brought with it a change to the tariff rate for large scale biomass over 1MW, bringing the 2.7p/kWh tariff down to 1p/kWh. This will have a significant effect upon those looking to invest in this technology on a large scale.

Rebecca Seaman, Associate at Fisher German, comments "This is obviously a significant drop and will affect those looking to develop this technology. Under the 2.7p/kWh tariff, a 1MW biomass boiler would have received annual payments in the region of £60,000 dependent upon heat loads. The new 1p/kWh rate would see the same boiler receive an annual payment of somewhere in the region of £22,000.

"The good news is that for those installing biomass under 1MW, such as installations on farms and estates, the rate has remained unaltered with the RHI is calculated to provide a return of 10-12%.

"A disadvantage of the new rates is that for many people looking to reduce their reliance on fossil fuels, such as oil, there is no longer the incentive to invest in a large biomass boiler to provide their heat.

"However, as disappointing as this is for large scale biomass projects, the RHI is a real support mechanism and provides excellent opportunities for landowners and farmers who are looking to develop renewable heat solutions."

If you have any further questions regarding the RHI and its implications, please contact Rebecca Seaman on 01858 411219 or email rebecca.seaman@fishergerman.co.uk.

For more information about Fisher German, please visit their website here: www.fishergerman.co.uk