Further Reforms To The Non-Domestic Renewable Heat Incentive (E, S, W)

Eligible heat uses, subsidy limits for very large plant and the regulation of plant to produce biomethane for injection into the gas grid for decarbonisation purposes are key issues covered by a Dept of Business, Energy and Industrial Strategy consultation on proposals for further reforms to the Non-Domestic Renewable Heat Incentive (RHI).

‘The Non-domestic Renewable Heat Incentive: further proposed amendments’ also proposes changes to cross-cutting issues such as environmental permitting, replacement plant and the use of estimated data.

The consultation does not relate to the separate Renewable Heat Incentive scheme for Northern Ireland.

Launched in 2011 to help business, public sector and non-profit organisations bridge the gap between the cost of renewable heating and conventional systems, the Non-Domestic RHI is in the process of being ‘reformed and refocused’ so it can continue to contribute to the UK’s renewable energy/carbon reduction targets while offering good value for money.

The first tranche of reforms on which DBEIS consulted in Spring 2016 included the addition of a novel budget cap mechanism and reforms to the way RHI tariffs are changed to reflect inflation.