Non-domestic RHI average capacity continues to grow

Analysis by Pixie Energy of the latest non-domestic Renewable Heat Incentive (RHI), published by BEIS, shows there is a continuing decline in the number of installations made under the scheme; however, average capacity continues to rise.

The latest quarter’s figures (January to March 2019) saw the second highest capacity per installation in the history of the scheme, at 0.88MW per installation, second only to the 1.01MW per installation reported in September 2018.

Stuart Leaver Analyst at Pixie Energy, said:

“The average capacity increases are likely to be due to economies of scale from installing more substantial heat assets. With those adopting schemes seeking to maximise the benefits, they can receive before changes in accreditation rules.

“The data indicates that there has been a rise in large biomass boiler installation capacity. This is possibly a result of the recent consultation – Renewable Heat Incentive: biomass combustion in urban areas.

“This consultation has the potential to impact accreditation for the scheme in the future, and asset developers may be attempting to get ahead of any reduction of subsidy and eligibility for larger heating assets.

“As government continue to map out the pathways for renewable heat and associated networks, these shifting trends are important in shaping government thinking around future policy for the sector.”


Notes to Editors

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About Pixie Energy

Pixie Energy was set up in 2015 to promote change in the GB energy market, to the benefit of consumers and communities. It seeks to explore and support commercial innovation and new entry in local energy markets based around smart, flexible technologies.

Non-Domestic RHI Report

The Non-Domestic Renewable Heat Incentive (RHI) Report is an ongoing series of quarterly updates including relevant insight into the RHI scheme developments on; guidance, policy updates, technology costs, tariff rates, and deployment statistics.

To request a sample version of the latest Non-Domestic RHI report, please click here.