CONTRARY to expectations, there is to be no cut in the Renewable Heat Incentive for medium scale biomass this spring, giving farmers and rural businesses extra time to get wood-fuelled boilers installed and certified for higher rate payments.

Following the white paper issued by the Department of Energy and Climate Change last year, in which the newly-elected Conservative majority government made good on its election promise to take the axe to renewables incentives, the sector had been braced for the current 5.24pence per/kwh rate for medium scale biomass burners to fall to a recommended flat rate of 2.9p/kwh on the stroke of April 1.

But DECC's quarterly review appeared at the start of this week with only a cut to the small-scale RHI included, leading to industry speculation that the planned spring implementation had been scrapped pending full parliamentary approval for the recommended cuts.

Whatever the reason, the axe hasn't fallen, and a new window has opened for installers and resellers to mop up customers who might otherwise have missed out locking into that higher RHI rate.

Speaking from Ayrshire-based biomass market heavyweights VG Energy, Steven Rawding welcomed the business opportunity, but bemoaned Westminster's 'inconsistent' handling of the incentive schemes.

"Renewable companies and clients investing heavily in these projects suffer greatly when there is inconsistency and imprecise messages by the governing bodies, fed out to the industry," said Mr Rawding. "This leads to speculation, peaks in demand, and damages the sector as a whole.

"When parliamentary approval is in place, we hope that DECC and OFGEM implement a sensible phase-in period, otherwise this is a catalyst for rushed installs and increased pressure and costs on both clients and suppliers," he warned. "We expect the white paper implementation to fall in line with the scheduled quarterly reviews, which would mean that potentially October 1 would be a sensible timescale for this cut."