Renewable Heat Incentive Changes
September 06th, 2017
The Renewable Heat Incentive is undergoing a number of changes which will come into force 20th September 2017.
- There will now be caps on the amount of eligible heat that can be claimed. This will be significant for larger, older properties including country houses, which will now only be able to claim payments for a fraction of their heat demand.
- Higher tariffs for biomass, Ground Source Heat Pumps and Air Source Heat Pumps. The most significant increases are for biomass (3.85p/kWh to 6.54p/kWh) and ASHPs (7.63p/kWh to 10.18p/kWh), which will significantly improve financial performance.
- Electrical metering required for heat pump systems.
- Tariff reductions (“degressions”) will follow depending on market take up of the scheme
Non Domestic RHI
- Biomass now has flat tiers for all sizes, which greatly reduces the available payments for “Medium” systems of 200-1000kW. This is significant, again, for large country houses or many commercial sites.
- Other reforms to follow later in the year;
- Support for shared ground loop systems (which may benefit multi-res installations)
- Tariff guarantees which “lock in” tariffs once the project has progressed far enough.
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