Notice

Changes to the Renewable Heat Incentive (RHI) schemes

Changes to the RHI schemes to ensure a smooth transition to successor schemes, respond to the pandemic, and make minor changes to the domestic scheme.

Applies to England, Scotland and Wales

Documents

Final stage impact assessment: June 2020

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Impact assessment: April 2020

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Details

These notices outline recently proposed changes to the existing Renewable Heat Incentive (RHI) schemes:

  • to ensure a smooth transition to future support schemes for low carbon heat by extending the domestic RHI for a further year and introducing a third allocation of Tariff Guarantees (TGs)
  • to ensure existing non-domestic RHI tariff guarantee projects can meet their commissioning deadlines in light of COVID-19 related delays
  • to provide additional time for existing non-tariff guarantee eligible non-domestic RHI (NDRHI) projects to commission in light of COVID-19 related delays
  • to ensure domestic RHI participants who have been unable to meet the 12 month rule requirements due to COVID related restrictions can access the scheme
  • to introduce minor administrative changes to the domestic RHI

Domestic RHI

26 March 2021: Domestic RHI regulations come into force on 1 April 2021

The amending regulations incorporating the proposed changes to the domestic RHI regulations / government response come into force on 1 April 2021: see the list of amendments here under 2 November.

11 January 2021: Changes to the domestic RHI regulations: government response

An outline of responses to this consultation.

2 November 2020: Changes to the domestic RHI regulations

  • to relax the current ‘12 month rule’ in the domestic RHI regulations to mitigate the impact of COVID-19. The rule requires accreditation applications to be made within 12 months of the commissioning date of the renewable heating system. This will allow installations with a commissioning date on or after 1 March 2019 to apply for accreditation to the domestic RHI until the scheme closes on 31 March 2022
  • to update the degression triggers calculation to remove installations that reach the end of their 7 year tariff lifetime on the scheme during the scheme extension period in 2021 to 2022
  • to update reference in the domestic RHI regulations to the new version of the HIES code of conduct (and date that it comes into force).

Non-domestic RHI

29 November 2021: Proposals to extend NDRHI commissioning deadlines for existing Tariff Guarantee and extension application applicants

You can express your views on an amendment proposals to the NDRHI Regulations in relation to commissioning deadlines for existing participants. This is to address the delays projects have been suffering due to factors such a COVID-19.

7 May 2021: Increase to biomass and other technologies COVID extension application budget caps: COVID-19 response

Latest increase to total annual budgets for biomass and other technologies.

18 December 2020: Changes to NDRHI tariff guarantee and COVID extension application budget caps

Ground and water source heat pumps: increases to TG3 budget cap (from 1 February 2021) and COVID Extension Application budget cap.

5 November 2020: Changes to non-domestic RHI support and COVID-19 response: further government response

Following the notice of 17 August, this response confirms our intention to introduce an extension for non-TG eligible projects impacted by COVID-19 related delays. In response to feedback the extension will be for 12 months after the closure of the non-domestic RHI (NDRHI) rather than the originally proposed 6 months. To be eligible, projects will need to demonstrate that resource had been invested in project development prior to 17 August 2020. The response outlines additions and refinements to the evidence requirements outlined in the 17 August notice.

17 August 2020: Changes to RHI support and COVID-19 response: further government response

A number of respondents to the initial notice highlighted that some existing non-Tariff Guarantee (TG) eligible projects could struggle to apply for accreditation before the non-domestic RHI closure deadline of 31 March 2021, as a result of COVID-19 related delays.

In response, BEIS will make further changes to the non-domestic Renewable Heat Incentive to help those non-TG eligible projects that have invested capital into project development but are not able to accredit to the scheme prior to its closure. We are introducing an extension for non-Tariff Guarantee projects on the NDRHI that were under development pre-17 August 2020.

30 June 2020: Changes to RHI support and COVID-19 response: government response

Most of the 15 responses were broadly supportive of the proposals, but they highlighted some concerns and recommendations. As a result we proceeded with the proposals, with some amendments. The changes provided support to businesses, many of which are SMEs and include manufacturers, installers, and project developers in the low carbon heating sector.

28 April 2020: Changes to RHI support and COVID-19 response: notice of proposals

  • to extend the domestic Renewable Heat Incentive scheme until 31 March 2022
  • to introduce a third allocation of flexible tariff guarantees under the non-domestic Renewable Heat Incentive scheme
  • to extend the commissioning deadlines for projects currently holding a Tariff Guarantee until at least mid-March 2021
Published 28 April 2020
Last updated 29 November 2021 + show all updates
  1. Non-domestic Renewable Heat Incentive: We have published a proposal to extend TG2, TG3 and extension application deadlines for non-biomethane technologies by 12 months to 31 March 2023.

  2. Non-domestic RHI: note of increase to biomass and other technologies COVID extension application budget caps

  3. Regulations amending the Domestic RHI come into force on 1 April 2021.

  4. Government response to the changes to the domestic RHI Regulations added.

  5. Ground and water source heat pumps: increases to TG3 budget cap (from 1 February 2021) and COVID Extension Application budget cap.

  6. Changes to non-domestic RHI support and COVID-19 response: further government response added.

  7. Notice of proposals for changes to the domestic RHI added.

  8. Further government response published.

  9. Government response published.

  10. First published.