Increase to Domestic RHI Tariff on 1st April 2017

The UK government consulted on proposed changes to the domestic RHI scheme and published their response on 14th December 2016. However, the general election which took place in June 2017 meant that the Parliamentary session was dissolved before RHI reform regulations came into force.

In the meantime, the RHI continues to operate and is open to applications.

However, please note that any future changes to the RHI regulations will be a decision for the next UK government.

The Department for Business, Energy and Industrial Strategy (BEIS) – formerly the Department of Energy and Climate Change (DECC) – has announced an increase to the domestic RHI tariff rates from 1st April 2017. This tariff increase will affect biomass boilers, air source heat pumps and ground source heat pumps. Heat demand limits have also been introduced which affects these technologies, but please note that solar thermal panels are excluded from these limits.

Domestic RHI applications submitted Biomass boilers and stoves (p/kWh) Air source heat pumps (p/kWh) Ground source heat pumps (p/kWh) Solar thermal (p/kWh)
1st Jan 2017 – 31 March 2017* 4.21p 7.51p 19.33p 19.74p
1st April 2017 – 30 June 2017** 6.44p 10.02p 19.55p 20.06p
01 July 2017 – 30 September 2017* If any new tariff changes are to be made due to degression, the next announcement by BEIS would be by 1 June 2017.

* these tariffs will be adjusted in line with CPI | ** these tariffs were adjusted in line with CPI

Tariff Uplifts

The domestic RHI tariff rates for biomass systems, air source heat pumps and ground source systems are going to be uplifted on 1st April 2017.

  • Biomass systems will increase from 4.21p/kWh to 6.44p/kWh
  • Air source heat pumps will increase from 7.51p/kWh (current tariff) to 10.02p/kWh.
  • The tariff for solar thermal will remain unchanged at 19.74p/kWh. (Not taking into account account any inflationary adjustments which will be made to tariffs on 1st April 2017.)

Applicants who apply to the Domestic Renewable Heat Incentive scheme on or after 14th December 2016 will be eligible for the current tariff rate at the date of applying, and will then be eligible for the increased tariff rate from the day the amended Domestic RHI Scheme Regulations come into force in 1st April 2017. This tariff increase will happen automatically, so domestic RHI applicants are not required to do anything.

Heat Demand Limits

Department for Business, Energy and Industrial Strategy (BEIS) also plan to introduce heat demand limits for biomass systems, air source heat pumps (ASHP) and ground source heat pumps (GSHP), limiting the amount of financial support any household can receive each year down to 25,000kwh for biomass systems and 20,000kwh for air source heat pumps. There is no heat demand limit for solar thermal panels.

Properties which exceed their head demands will still qualify for the domestic RHI but their RHI payments will be capped in-line with the new limits. Payments on heat pumps will continue to be made on the renewable proportion of the head demand only.

Visit Our Showroom

The AC Gold renewable energy showroom in Stirling offers an opportunity to see a range of renewable energy systems on display including solar PV, off-grid power solutions and a range of domestic biomass log and pellet boilers.

AC Gold Renewable Energy Showroom
11 Back O'Hill Industrial Estate, Stirling, FK8 1SH

Mon-Fri: 9am - 5pm