Important changes to the Domestic RHI scheme
Monday 14th August 2017
In March 2016, the Government published a consultation on changes to the Domestic Renewable Heat Incentive (RHI) scheme. After taking into account the feedback it received, The Department for Business, Energy & Industrial Strategy (BEIS) published its consultation response on 14
December 2016. On 15 March 2017, the Government published the draft Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2017. to view the complete regulations visit http://www.legislation.gov.uk/ukdsi/2017/9780111156353/contents
The tariffs that determine the rates for your Domestic RHI payments are set by BEIS. The current tariffs are published on the Domestic RHI 'Tariffs and Payments' page. BEIS has announced tariff increases for three of the eligible renewable heating technology types for the scheme. The tariff uplifts for new air source heat pump (ASHP),ground source heat pump (GSHP), and biomass system accreditations. There will be no changes to tariff rates for solar thermal systems.
Those who apply to the scheme on or after 14 December 2016 will be eligible for the current tariff rate at the date of applying, and then will subsequently be eligible for the increased tariff rate from the day the amended Domestic RHI Scheme Regulations come into force in spring/summer 2017.
This tariff increase will happen automatically so you don't need to do anything.
Heat demand limits may be coming soon
Domestic RHI subsidy payments are publicly funded so BEIS must ensure the subsidies represent good value for money in order to protect the public purse.
For this reason, BEIS is introducing 'heat demand limits' to the Domestic RHI scheme. This means that there will be a limit to the financial support that scheme participants can receive for their heat use annually.
Heat demand limits will be set for ASHPs, GSHPs and biomass systems. The figures for the heat demand limits can be found below. Payments for heat pumps will continue to be made only on the renewable proportion of the heat demand, in line with the current scheme rules.
Ftther information on the changes to RHI and what that means for you can be found here.