Renewable Heat Incentive (RHI) Tariffs to Increase 2017

Christmas has arrived early for the renewable energy industry as the Government has confirmed increased support for those adopting renewable energy systems such as air source heat pumps by increasing Renewable Heat Incentive tariffs.

Domestic RHI Breaking News, December 2016

  • There will be increased domestic RHI tariffs for air and ground source heat pumps.
  • It is also confirmed that Solar Thermal is here to stay as part of the RHI.

RHI logo with Heat pumps

The Domestic RHI scheme has been designed to encourage households to move away from conventional heating technologies to low-carbon, renewable alternatives. Since the scheme was launched in April 2014 so far over 50,000 households have been helped to make the switch to renewable heating systems. With the announcement of this increased incentive we expect many more people to adopt renewable energy in their homes.

The scheme is open to all homes, but is particularly targeted at households situated off the gas grid, to support these properties in moving away from highly carbon-intensive heating fuels, such as coal, liquid petroleum gas (LPG), oil and electrical heating. From April 2017, households that have Air Source Heat Pumps systems installed will see a 33% increase in the RHI tariff they are entitled to.

The Department for Business Energy and Industrial Strategy has just announced some significant changes to the RHI in 2017.

The full consultation response was published 15/12/2016 but the highlights are as follows:

  • Air Source Heat Pumps RHI will increase from 7.51p to 10.02p, an increase of 33%
  • Biomass RHI will increase from 4.21p to 6.44p, an increase of over 50%
  • Solar thermal remains eligible for Domestic RHI but no change to the rate of 19.74p/kWh, although only until 1st April.
  • There is a cap on the total heat claim for biomass of 25,000 kWh and 20,000kWh for heat pumps
  • Heat Pumps will also now require electricity metering
  • The full 114 page report can be viewed here

AND IMPORTANTLY

Although the new rates don’t take effect until 1st April 2017, any install between now and then will automatically move on to the higher rates in April

These changes demonstrate that the Government is committed to encouraging properties to move away from carbon intensive heating systems by making the RHI more attractive.

Improved RHI for Heat Pumps

In particular the improvement to the RHI for heat pumps is very significant with the aim to support the development of a robust heat pump supply chain.

This will also help to bring Air Source Heat Pumps into the mainstream which is a huge positive benefit for all renewable installers.