Jurisdiction: England, Scotland, Wales
Commencement: 20 July 2020
Amends:
The Domestic Renewable Heat Incentive Scheme Regulations 2014
The Renewable Heat Incentive Scheme Regulations 2018
The Domestic Renewable Heat Incentive Scheme Regulations 2014 establish a government financial incentive to promote the use of renewable heat within households. Financial support is paid quarterly, at a set rate per unit of renewable heat produced for seven years, to the owner of the heating system. Tariffs are set according to technology. The scheme is administered by the Gas and Electricity Markets Authority.
The Renewable Heat Incentive Scheme Regulations 2018 continue the Renewable Heat Incentive Scheme to facilitate and encourage the renewable generation of heat by giving subsidy payments to eligible generators of renewable heat and producers of biomethane.
The Domestic Renewable Heat Incentive Scheme Regulations 2014
These Regulations extend the Domestic Renewable Heat Incentive Scheme for another year until 31st March 2022. No changes are made to eligibility criteria or ongoing obligations for participants.
Changes are made to Schedule 6 to update the expenditure threshold for biomass plants, air source heat pumps, ground source heat pumps and solar thermal plants. This is to ensure cost control for the scheme.
The Renewable Heat Incentive Scheme Regulations 2018
These Regulations introduce a flexible new allocation of ‘Tariff Guarantees’ for participants in the Non-Domestic Renewable Heat Incentive Scheme (NDRHI). A Tariff Guarantee allows applicants to the NDRHI to secure a tariff rate before their installation is commissioned and fully accredited on the Scheme. In applications for a Tariff Guarantee, information is submitted in three stages. Stage 2 information has to be submitted before the closure of the NDRHI on 31st March 2021. The payment period will last until 31st March 2041, and the installation must be accredited no later than 31st March 2022.
In addition, commissioning deadlines are extended to 31st March 2022 for all projects that have submitted a stage 1 Tariff Guarantee application on or after 17th July 2019 and before 29th June 2020. This is due to commissioning delays for installations caused by COVID-19.
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