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Changes to the Domestic RHI

As outlined by the Department for Business, Energy & Industrial Strategy (BEIS), changes to the Domestic Renewable Heat Incentive (RHI) come into effect next week. From 20th September 2017, tariffs paid under the RHI will be increased and heat demand limits introduced for domestic heat pump installations.

Tariffs will be increased as follows:

Technology TypeNew Tariff (pence/kWh)
Air Source Heat Pumps10.18
Ground Source Heat Pumps19.86

If your heat pump was registered with Ofgem for the Domestic scheme on or after 14th December 2016 and before 20th September 2017, your tariff will be automatically updated to the new one.

The following heat demand limits will also come into force on 20th September 2017:

Technology TypeAnnual Heat Demand Limit (kWh)
Air Source Heat Pumps20,000
Ground Source Heat Pumps30,000

These changes will limit the financial support that homeowners can receive for their heat use annually. Payments for heat pumps will continue to be made only on the renewable proportion of the heat demand.

If you are already receiving RHI payments, you do not need to do anything about these changes. Your scheme will be updated accordingly.

For more information, see the Ofgem factsheet or if you are unsure how the changes will affect your forthcoming domestic heat pump project, please contact us and we’ll happily talk you through it.

Renewable Heat Incentive RHI logo