On 14 December 2016, the UK Government published their response to the consultation on the Renewable Heat Incentive (RHI) scheme.
The consultation proposed several changes to the existing domestic and non domestic RHI scheme. Below is a summary of the UK Government’s final proposals in relation to the domestic scheme, which the UK Government intends to implement in spring 2017 subject to parliamentary approval.
- The scheme will continue to support all four technologies currently supported.
- The tariffs for new ASHPs will be increased to 10.02 pence per kilowatt-hour (p/kWh).
- The tariffs for new GSHPs will be increased to 19.55p/kWh.
- The tariff for new biomass installations will be increased to 6.44p/kWh, the level available between October and December 2015, adjusted for inflation.
- The increased tariff for biomass boilers and stoves, ASHPs and GSHPs will be applicable to those participants who apply to the scheme on or after 14 December 2016 (the date the consultation response was published) although the increased tariffs will only apply from the date the regulations come into force. Participants will receive the existing tariffs for heat used (on the basis of either deeming or metering) before this point. This approach is intended to encourage consumers to continue to install renewable heating systems between the date of the consultation response and the date the changes come into force, to avoid a hiatus in investment and consequential impacts on the supply chain.
- Heat demand limits will be introduced, to limit the level of annual heat demand in respect of which any household can receive support. The heat demand limits will be set at 20,000kWh for ASHPs, 25,000kWh for biomass boilers and stoves and 30,000kWh for GSHPs. However, this will not disqualify properties with higher heat demands from applying to the scheme. There will be no heat demand limit for solar thermal.
- All new ASHPs and GSHPs applying for support under the scheme will be required to have electricity metering to monitor their heating system. However, payments will continue to be on the basis of the deemed heating requirements of the property, except for second homes and where a renewable heating system is installed alongside another heating system, in which cases payments will continue to be on the basis of heat metering.
- GSHPs making use of a shared ground loop will continue to be eligible for the non-domestic scheme and will not be eligible on the domestic.
- There will be some changes to the budget management arrangements for the scheme.
If you have any questions about the policy decisions made in the consultation response then you can contact BEIS at enquiries@beis.gov.uk.
Find out more information on all of the above changes including non domestic.
If you have any questions about an existing DRHI application or a system already approved for DRHI payments then please contact Ofgem eServe, the scheme administrators, at 0300 030 0744 between 9am-5pm Monday-Friday or email domesticrhi@ofgem.gov.uk.