RHI Scheme reform delays

First Brexit slowed down the passage of scheme reforms through Parliament, now the snap General Election is pushing back the implementation of substantive changes to the domestic Renewable Heat Incentive Scheme. Does this present a window of opportunity?

Biomass pellets

Following last June's referendum there has been a lot to occupy our elected, and non-elected, representatives, so no wonder it took some time before the amendments were debated and laid before Parliament in the middle of March. Under normal circumstances, you'd expect a further 8 - 10 weeks to pass before the amended  regulations came into force, but these are far from normal circumstances.

The final Spring RHI Regulation changes were about to be laid before Parliament after some last minute revisions over Easter, and were fully expected to come into force by the end of May or beginning of June. Now the snap General Election has been called, everything has ground to a halt. With Parliament dissolving on 3rd May, the timetable for the RHI Regulations changes has been disrupted once more.

The Department for Business, Energy and Industrial Strategy remains committed to the reforms which will see, on the plus side, increases in tariffs and changes to degression triggers.

Uplifted tariffs:

 Technology Current tariff (p/kWh)  Uplifted tariff (p/kWh) 
 Air Source Heat Pumps  7.63  10.18
 Biomass   4.28  6.54
 Ground Source Heat Pumps  19.64  19.86
 Solar Thermal  20.06  20.06






On the downside, we will see heat demand caps introduced which limit the payments any one household can receive. Those properties with the highest heat demand will then be missing out on potentially thousands of pounds in RHI payments. That's fairer for many, but frustrating for some.

Heat demand limits:

Technology   Annual Heat Demand Limit (kWh)
 Air Source Heat Pumps  20,000
 Biomass  25,000
 Ground Source Heat Pumps  30,000





While we don't know the precise date the Reforms will come into effect, this delay could present an opportunity for some homeowners if they're in a position to move quickly and effectively beat the cap.

If you'd like to explore which renewable energy heating technology might be right for your home, or to look into the feasibility of installing a system in the coming weeks, Yorkshire Heat Pumps will be very happy to discuss your requirements. You can contact us via the Contact form, or give us a call on 01423 788699.



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