Renewable Heating Systems Incentive

Changes to the Domestic Renewable Heating Incentive (RHI)

The second stage of changes for the Government’s Domestic RHI scheme have been sent to Parliament for approval and are expected to be approved in the coming weeks. These changes are important for you to know about, so we’ve done the research and have summarised the changes:

Metering performance for heat pumps

For most of our customers, this new change will apply to you as our most popular installation for renewable heating is our Air Source Heat Pumps and Water/Ground Source Heat Pumps. This new regulation requires everyone who owns a heat pump to have an electric meter installed to measure the amount of electricity used to generate the heat produced by your heat pumps. Without a meter, you won’t be eligible to receive your Domestic RHI payments. Securing the correct meter is simple enough; a standalone electricity meter, on-board meters, or a Metering and Monitoring Service Package (MMSP) will carry out the job efficiently.

New payment schedules for Metering and Monitoring Service Packages (MMSP)

If you’re a successful applicant for MMSP, then you’ll receive payments to be able to afford the cost of installation and maintenance. Before the new regulation, you were only paid a certain amount every three months depending on whether you have a heat pump or biomass boiler. After the new regulation, MMSP members will receive a lump sum as well as the three-month payments, providing more support and encouraging more people to stick to the agreement.

Assignment of rights

Most renewable heating systems have a daunting upfront cost which can repel many people from going ahead with the installation. From 27th June 2018, households will be able to use an “investor” to help support with the installation and maintenance costs for a renewable heating system, as long as that household assigns their “investor” to receive their Domestic RHI payments. It’s a win-win situation where the household can install a renewable heating system while the “investor” receives some gratification for investing in that renewable heating system.

Changing degression rules

The Department for Business, Energy and Industrial Strategy (BEIS) is responsible for controlling the budget for Domestic RHI tariffs. To do this, they’ve set thresholds and when those thresholds are met, degression will take place to reduce the tariffs so that budget is not overspent. BEIS are making changes to degression rules by setting three thresholds that will trigger the reduction in tariffs. However, if you’re already an applicant to the Domestic RHI payments, a reduction in the tariff rate will not affect the payments you receive, a change in tariff rate will only affect anyone signing up on or after the tariff change date.

Now that you’re clued up on what the latest Domestic RHI regulations are, you can carry out all the checks and changes needed to comply with these new rules, making sure that you receive your RHI payments. If you need any support, please contact us and we’ll be happy to help.

Further information about the second stage of changes can be found here: www.ofgem.gov.uk/environmental-programmes/domestic-rhi/about-domestic-rhi/chanes-scheme.