The Renewable Heat Incentive Scheme (Amendment) (No. 2) Regulations 2022

The Renewable Heat Incentive Scheme Regulations 2018 revoke and replace the Renewable Heat Incentive Scheme Regulations 2011.

They continue the Renewable Heat Incentive (RHI) Scheme to facilitate and encourage the renewable generation of heat by giving subsidy payments to eligible generators of renewable heat and producers of biomethane.

*Note from 31st March 2021 the scheme is closed to new applicants barring a few exceptions. Payments for installations already accredited under the scheme will continue until 31st March 2041.*

Duties

Part 1: Introductory provisions
The Gas and Electricity Markets Authority (‘the Authority’)  must make, to participants who are owners of accredited RHI installations, payments for generating heat that is:

• used in a building for any of the following purposes:
  • heating a space;
  • heating water;
  • carrying out a process; or
• used otherwise than in a building for either of the following purposes carried out on a commercial basis:
  • cleaning;
  • drying.

The Authority must make periodic support payments to participants who are producers of biomethane for injection.

The Authority must not make periodic support payments for the generation of heat by an accredited RHI installation which the Authority considers is used for an excluded heat use. This includes heating a swimming pool other than one which is used for commercial or municipal purposes, drying digestate or woodfuel (with exceptions), and drying, cleaning or processing certain waste.

Part 2: Eligibility and matters relating to eligibility
Chapter 1 defines the eligibility criteria that must be satisfied for a plant to be eligible to participate in the Scheme.

Chapter 2 specifies the eligibility criteria other than those in relation to metering.

Chapter 3 specifies the eligibility criteria in relation to metering, setting out the types of meters which may be used, the requirements with which they must comply, and what must be measured.

Part 3: Accreditation, registration and tariff guarantees
An owner of a plant, including a plant which is additional RHI capacity, may apply for it to be accredited. An application for accreditation may be accepted or refused by the Authority.

A producer of biomethane for injection may apply to the Authority to be registered as a participant. An application for registration may be accepted or refused by the Authority.

In specified circumstances the Authority may or may not accredit a plant or register a biomethane producer where the participant has received a grant from public funds.

A person may apply for, and the Authority may grant preliminary accreditation in respect of, a plant and preliminary registration of biomethane producers.

In specified circumstances a person may apply for, and the Authority may grant a tariff guarantee subject to the budget allocation for, tariff guarantees set by the Secretary of State.

Part 4: Ongoing obligations for participants
Chapter 1 of Part 4 sets out ongoing obligations with which participants generating heat from biomass must comply.

Chapter 2 of Part 4 sets out ongoing obligations for participants who are generating heat from biogas and producing biomethane for injection.

Chapter 3 of Part 4 sets out the ongoing obligations for participants which are not specific to those participants generating heat from biomass or biogas or producing biomethane for injection.

Part 5: Sustainable solid biomass, biogas or biomethane
Part 5 imposes requirements in relation to solid biomass or biogas used to generate heat and on biomethane which is injected. These provisions require compliance with life cycle greenhouse gas emission limits and restrict the place from which solid biomass or feedstock for biogas or biomethane can be sourced.

Part 6: Changes affecting accredited RHI installations and registered producers
This Part specifies the powers of the Authority, including suspending payments where it is made aware of a change in circumstances affecting an accredited RHI installation, including where there has been a transfer in ownership or a change in location of an RHI installation, or a change in circumstances in respect of a shared ground loop system such that the heat generated by a ground source heat pump forming part of that system is required to be metered.

Part 7: Periodic support payments
Part 7 confers on the Authority the function of calculating and paying periodic support payments to participants. These Regulations specify the method by which tariffs are assigned; confer a function on the Authority to calculate and publish a table of tariffs each year, adjusted in line with the consumer prices index; and specify the method by which periodic support payments are calculated.

Part 8: Additional RHI capacity and additional capacity for biomethane production
This Part specifies how a plant using the same source of energy and technology as an accredited RHI installation and supplying heat to the same heating system (known as additional RHI capacity) and how a biomethane producer who produces biomethane which is additional to the capacity specified in the initial application (known as additional biomethane) are to be treated under the Scheme.

Part 9: Enforcement
Part 9 sets out requirements in relation to the enforcement of these Regulations.

Part 10: Administrative functions of the Authority
This Part confers various administrative functions on the Authority.

Part 11: Revocations and savings
Part 11 revokes the Renewable Heat Incentive Scheme Regulations 2011, and makes saving provisions in relation to that revocation.