Government commits to RHI and increases tariffs

Great news! The Government has announced its long-term commitment to renewable heating by confirming a continued budget for the RHI out to 2020/21, and by taking a series of measures to increase take-up of heat pumps, solar thermal and biomass systems, including tariff increases.

DOMESTIC RHI TARIFFS

Air Source Heat Pump New Tariff: 10.02p/kWh (Was 7.51p/kWh)
Heat Demand Limit under RHI: 20,000kWh

Ground Source Heat Pump New Tariff: 19.55p/kWh (Was 19.33p/kWh)
Heat Demand Limit under RHI:30,000kWh

Biomass New Tariff: 6.44p/kWh (Was 4.68p/kWh)
Heat Demand Limit under RHI: 25,000kWh

Solar Thermal No change for Tariff: 19.74p/kWh
No Heat Demand Limit under RHI

Applications can be made from today at the new rates. Actual increased payments will be made from when the law is changed “in the Spring”

Although Heat demand limits will be introduced (see figures above), this will not disqualify properties with higher heat demands from applying to the scheme.

All new ASHPs and GSHPs will be required to have electricity metering to qualify to applying for support under the scheme to monitor their heating system. However, payments will continue to be on the basis of the deemed heating requirements of the property (except for second homes and where a renewable heating system is installed alongside another heating system, in which cases payments will continue to be on the basis of heat metering).

NEW NON DOMESTIC TARIFFS

Biomass: the three current biomass tariff bands will be replaced with a single tariff, which will be subject to tiering. The Tier 1 tariff will be set at 2.91p/kWh and the Tier 2 tariff at 2.05p/kWh. Each plant will have a tier threshold equivalent to a 35% load factor.

Biomass-CHP: there will be no further changes specific to support for biomass-CHP as a result of the March 2016 consultation.

ASHP: the tariff for ASHPs will remain at 2.57p/kWh. The tariff for GSHPs will remain at 8.95p/kWh for Tier 1 and 2.67p/kWh for Tier 2 with no change to the tier threshold.

GSHP: those sharing a ground loop will continue to be eligible for support through the non-domestic RHI. However, for domestic properties sharing a ground loop payment will be made on the basis of deemed heat use, as in the domestic scheme. Electricity metering will be required for GSHPs sharing a ground loop where they are installed in domestic properties.

Solar Thermal: systems will remain eligible for support under the scheme at 10.28p/kWh and the capacity limit of 200kW will continue to apply.

Tariff guarantees will be introduced providing investors with greater certainty regarding their tariffs earlier in the project cycle, for:

  • Large biomass boilers (above 1MW in capacity)

  • Large biogas plant (above 600kW)

  • GSHPs (above 100kW, including The Non-Domestic RHI shared ground loop systems with a total installed capacity above 100kW) All capacities of biomethane, biomass-CHP and deep geothermal plant.