FAQs
How have the size bands been set?
Government has said it has aimed to set size ranges to reflect the differential costs of installations at various sizes.
Chapter 6 of the government's RHI announcement says
Tariff boundaries
For most technologies, a number of tariffs for different sizes of installations have been set, and the boundaries between these tariffs have been set primarily to reflect the economies of scale, but also to align more generally with the typical sizes of installations.
A number of stakeholders have warned that this approach could lead to a ‘cliff-edge’ effect, where the change in tariff levels between tariff bands, if too steep, could act as a disincentive to larger-scale installations or encourage 'gaming' (i.e. under-sizing of equipment to avoid falling into the larger-size tariff). In response to these concerns, we have increased the number of tariffs and set the boundaries in a way we believe will help to reduce this risk.
