Domestic RHI Tariff Uplifts

On 20th September 2017, the tariff rates for the Domestic Renewable Heat Incentive (RHI) are increasing for biomass boilers, air source heat pumps and ground source heat pumps.

In August, the Government confirmed that the tariff rates for the Domestic RHI Scheme would be uplifted for some technologies, benefitting homeowners who are looking to install renewable energy to deliver their home’s heating needs. In particular, homeowners looking to install a biomass boiler, such as a Grant Spira or Vecta model, or an air source heat pump, including the Grant Aerona³, will be able to claim higher financial incentives through the RHI as a result of the uplift in tariffs.

The RHI is a Government Scheme designed to encourage the uptake of renewable energy to heat homes in the UK. Applicants who join the RHI Scheme, and adhere to its terms and conditions, will receive quarterly payments for seven years for the amount of renewable heat that their system is estimated to produce. For homeowners who apply to the RHI Scheme between 20th September 2017 and 31st December 2017, the tariffs will be as follows:

  • Biomass Boilers = 6.54p/kWh
  • Air Source Heat Pumps = 10.18p/kWh
  • Ground Source Heat Pumps = 19.86p/kWh

This uplift in the Domestic RHI tariffs is part of a set of changes which were originally announced in December 2016 following a comprehensive Government consultation. Originally due to be introduced in the Spring/Summer of 2017, the reforms to the RHI Scheme were delayed as a result of the election which took place in June this year. Subject to Parliamentary approval, the changes to the scheme Regulations that were announced in the December 2016 are now being introduced in two stages.

On 20th September 2017, Stage One of the reforms comes into effect, with the tariff uplifts (given above) and the introduction of annual heat demand limits which are detailed below:

  • Biomass – annual heat demand limit of 25,000kWh
  • Air Source Heat Pumps – annual heat demand limit of 20,000kWh
  • Ground Source Heat Pumps – annual heat demand limit of 30,000kWh

The second stage of amendments is due to be introduced later this year or in the early part of 2018, again subject to Parliamentary approval. Stage Two will see the RHI’s budget management mechanism extend until 2020/21 as well as introduce the remainder of the RHI reform package as announced in December 2016.

Full details about the changes can be found on the OFGEM website and within this OFGEM factsheet.

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