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On 7th February 2018, The Department for Business, Energy and Industrial Strategy (BEIS) laid their proposed RHI reforms before Parliament. 

 

This signals the Government's continued commitment to the RHI scheme, which is very encouraging for the industry.  The RHI, whether domestic or non-domestic, offers customers a great incentive to install biomass and heat pump systems, and we are excited to see new projects coming through in 2018.  

The proposals affect both the Domestic and Non Domestic schemes, with MCS summarising the changes for biomass and heat pumps as:

  • Removal of wood fuel drying, waste drying or processing, and domestic swimming pools as eligible uses of heat.
  • Revision of degression thresholds. 
  • Introduction of shared ground loop regulations for the Non-domestic RHI.
  • Introduction of mandatory electricity metering for heat pumps on the Domestic RHI and domestic properties on shared ground loop systems in the Non-domestic RHI.
  • Removal of digestate drying as an eligible heat use.
  • Introduction of assignment of rights.
  • Introduction of tariff guaruntees.
  • Various operational administrative changes.

In terms of timescales, it is six to eight weeks for parliamentary debate, followed by parliamentary approval - all subject to parliamentary time.

 

Draft regulations are available to view on legislation.gov.uk here:

http://www.legislation.gov.uk/ukdsi/2018/9780111165430/contents

http://www.legislation.gov.uk/ukdsi/2018/9780111165362/contents

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