Latest news on Renewable Heat Incentive (RHI)

News has been released this week on the planned changes to the RHI by DECC over the next 12 months. The changes will affect all aspects of the scheme which are listed below however the full press release can be found here:

https://www.gov.uk/government/news/government-sets-out-plans-to-cut-emissions-from-heat

The key points are as follows:

1. The domestic RHI offering payments to householders who install renewable heat technologies is to pushed back until spring 2014. Details of how the domestic renewable heat incentive (RHI) scheme will work and the tariff levels is now due be published in the summer, the date the government said last year that the programme would start.

2. To cover the gap, the government will extend the Renewable Heat Premium Payment (RHPP) scheme, which offers money off the cost of renewable heating equipment such as heat pumps and solar thermal systems, until March 2014. The Energy Saving Trust (EST) will begin issuing vouchers under the RHPP householder scheme extension from 1 April 2013.

3. Non-domestic tariffs will be reviewed this Spring, with new tariffs to come into force in spring 2014. Where tariffs are increased as a result of the review DECC intends to backdate the higher rates to all installations completed after January 21st 2013.

4. Technologies likely to have a higher tariff rate applied are small and large ground Source heat pumps, other technologies will experience no change to the payments.

5. Air source heat pumps are likely to be included in the RHI for both domestic and non-domestic from Spring 2014, tariff rates will be announced after the September 2013 review.

All of the above is good news, however it is disappointing that the domestic RHI has been moved back once more when it was originally due to have been implemented in Spring 2013.