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Author: Matt Smith

Reformed RHI Scheme Includes Uplifted Tariffs

The Renewable Heat Incentive (RHI) scheme is a financial incentive for businesses and domestic users of renewable energy systems. The scheme was put in place in April 2014 and allows users of renewable systems to claim back funds over a period of seven years. So far the scheme has supported thousands of people with installing renewable systems and helped to promote renewable energy across the UK.

The Department for Business, Energy & Industrial Strategy (BEIS) has now announced an ‘Reformed Scheme’  to help deliver better value for money and support the growing renewables market. The scheme was announced on 14th December 2016 and will come in to force in the Spring of 2017.

Below is a list of the reforms which you will need to be aware of if you decide to apply for the RHI scheme in the future.

  1. Tariff uplifts for new Air Source Heat Pumps (ASHP), Ground Source Heat Pumps (GSHP) and Biomass Systems. There are no changes planned for tariff rates on Solar Thermal systems.
  2. Introduction of Heat Demand Limits for ASHP, GSHP and Biomass Systems which puts caps on the financial support a participant can receive for heat annually. Solar Thermal will continue to be measured via the MCS’s Annual Generation Figures.
  3. Those with heat demand above the capping limits can still apply for financial support through the RHI scheme.
  4. Electricity Metering Arrangements will need to be installed alongside heating systems. This can be done via electric metering, onboard electric metering or the new Metering and Monitoring Service Package (with detailed information for heat pump performance)
  5. Degression will be introduced allowing BEIS to lower tariff rates if uptake is higher than expected.

If you do apply for the RHI scheme between the 14 December 2016 and Spring 2017, then you will be eligible for the uplifted tariff rates which will be automatically applied when the changes come in to effect

Timeline for changes

The RHI Reform Timeline
A timeline for RHI Reforms running up to the Spring of 2017.

Find out more about the changes to the RHI scheme.