New Look RHI for 2017 and beyond

26.01.2017

Reforms were announced to the Renewable Heat Incentive (RHI) scheme, designed to help the UK reach its 2020 renewable heat target.

The changes have been broadly welcomed by the industry, largely because they increase tariffs for domestic heat pumps and guarantee tariff levels for large scale plant. Certainly, it is very encouraging to see renewables getting such positive public backing at a time when some were questioning the government’s enthusiasm.

From REHAU’s perspective, we’re excited about the new opportunities which now exist for our customers installing both air and ground source heat pumps in the domestic sector. Tariffs have been raised for both technologies, as they have for domestic biomass. Overall, this is likely to mean a much broader take up of renewable heat in the domestic sector which is exactly what is needed.

In terms of district heating, we also fully support the decision to introduce tariff guarantees for large scale plant, allowing ground source district heating schemes to qualify for the non-domestic RHI, and the reversal of the proposed reductions in tariffs for biogas. The changes to the non-domestic biomass tariffs are very much in line with what was proposed in the original consultation,so there were no real surprises in the final outcome.

For installers of REHAU’s polymer pipework solutions, there is lots to feel positive about.

Here are the key changes:

Non-domestic RHI

- The previous 3 separate biomass tariffs (small, medium and large) will be moved into one single biomass tariff at 2.91p (Tier 1) and 2.05p (Tier 2)

- The tier threshold has increased from 15% to 35%

- No changes to heat pump tariffs

- Shared ground loop GSHP projects eligible for non-domestic RHI

- Tariff guarantees are now available for large projects

- The biogas heat tariff changes have been reversed and the previous tariff will return in Spring 2017. This remains as separate small, medium and large tariffs.

- Feedstock requirements have been introduced for biogas / AD plants.

- Solar thermal remains in the scheme

Domestic RHI Changes

-  Increase in the tariff for air source heat pumps (7.51p > 10.02p)

-  Increase in the tariff for ground source heat pumps (19.33p > 19.55p)

-  Increase in the tariff for biomass boilers (4.68p > 6.44p)

-  Heat demand limits have been set (20,000kWh for ASHP, 30,000kWh for GSHP and 25,000kWh for biomass)

-  Solar thermal remains in the scheme

To find out more contact REHAU today enquiries@rehau.com

Press and publicity contact REHAU Ltd.

Jo Trotman

+44 (0)1989 762751