Blog Post
Looking beyond the Renewable Heat Incentive (RHI) Scheme
Matt Olney • May 01, 2020
A consultation has been launched by the Department for Business, Energy and Industrial Strategy to discover how low carbon heat will be supported in the future after the current RHI scheme ends.
What is the RHI?
The RHI
is a UK Government programme first established in April 2014 and designed to encourage both domestic and non-domestic customers to use renewable heat technologies.
The objective of the scheme is to assist both domestic and non-domestic properties from achieving the UK target of producing 12% of its heat from renewable sources by the end of this year.
To encourage the adoption of renewable heat sources the scheme gives payments to those that do. Those who do apply must do so via Ofgem.
RHI coming to an end?
With the RHI due to end this year the consultation is seeking ways to accelerate the decarbonisation of the UK’s heating systems.
To do this and to get people on board, the BEIS has said that the proposals must ‘support businesses at a time when economic recovery will be so important’.
The government consultation backs replacing the RHI with a new Clean Heat Grant, which will provide financial support via grants for the adoption of heat pumps and biomass.
It suggests that the domestic RHI could be extended until 31st March 2022 and on projects holding a tariff guarantee until at least mid-March 2021. The non-domestic RHI, however, will not be extended.
“Overall, these are mixed announcements for the renewable heat industry. On the one hand, they have provided much-welcomed clarity on the completion of projects currently underway, the prospect of new projects and the government’s commitment to green gas.
“On the other hand, we were disappointed by the lack of extension for new non-domestic RHI projects and the implications the cap on the future grant scheme will have,” said Frank Gordon, Head of Policy at the Association for Renewable Energy and Clean Technology.
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