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English Cymraeg


DOMESTIC RENEWABLE HEAT INCENTIVE (DOMESTIC RHI)


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PROGRAMME

 * About the Scheme
 * Domestic RHI Closure
 * Applicants
 * Participants
 * Tariffs and payments
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DOMESTIC RHI CLOSURE

The Domestic Renewable Heat Incentive Scheme (DRHI) in Great Britain has now
closed. The DRHI closed to new applicants including metering and monitoring
service package applications at midnight on 31 March 2022. Only applications
following a change of ownership can be made now that the scheme has closed.

Read our Change of ownership for more information.


ABOUT THE SCHEME

The Domestic Renewable Heat Incentive (DRHI) is a government financial incentive
to promote the use of renewable heat, which can help reduce carbon emissions and
meet the UK’s renewable energy targets.

The DRHI is open to all households, on and off the gas grid, who have installed
a renewable heating system and meet the eligibility criteria. People who join
and follow the scheme rules receive quarterly payments over seven years for
clean, green, renewable heat their systems are estimated to produce.

The Department for Business, Energy and Industrial Strategy (BEIS), is
responsible for developing the underpinning RHI policy including setting
tariffs, establishing the legislative framework, and introducing amendments to
the scheme. Under the regulations, we are the administrator of the RHI. Any
queries about aspects of policy should be addressed directly to BEIS. Under the
regulations, Ofgem was appointed as the administrator of the DRHI scheme.

DRHI SCHEME CHANGES

BEIS periodically reviews DRHI scheme policy which means the rules can change
for both new and existing participants. To achieve successful accreditations and
to keep receiving payments, it is important to keep up to date with the scheme
rules.

Ofgem will publish information on how we administer policy changes. Please note
that the content and timing of any changes we outline will be subject to
parliamentary process. Our updates are based on information provided by BEIS.


2021 READ MORE

On 1 April 2021, the following changes to DRHI regulations came into force:

 * Applicants who have eligible renewable heating systems commissioned on or
   after 1 March 2019, will now be able to apply for the DRHI scheme until the
   scheme closes to new applications (ie before midnight at the end of 31 March
   2022). This a relaxation of the 12-month from commissioning date rule.
 * Applicants who commissioned their eligible heating system on or after 1 March
   2019 and who were previously rejected for failing to meet the 12-month rule,
   can re-apply for accreditation to the scheme.
 * Update of the degression triggers calculation to remove installations that
   reach the end of their 7 year tariff lifetime on the scheme during the scheme
   extension period in 2021 to 2022.
 * Update of reference in the domestic RHI regulations to the new version of the
   HIES code of conduct (and date that it comes into force).


2020 READ MORE

On 20 July 2020, the following changes came into force:

 * The Domestic RHI scheme was extended by 2 years
 * BEIS introduced a new set of extended degression triggers to ensure scheme
   cost control


2019 READ MORE

On 17July 2019, the following changes came into force:

 * BEIS introduced changes for individual technologies in order to ensure that
   the expenditure triggers at which tariff degressions take place set out in
   this schedule are in line with the latest deployment assumptions


2018 READ MORE

On 22 May 2018, the below changes came into effect following The Renewable Heat
Incentive consultation:

 * Metering for performance for heat pumps
 * New Metering and Monitoring Service Package (MMSP) payment schedules and
   enforcement powers
 * Assignment of rights (AoR) (came into effect 27 June 2018)
 * Revised degression thresholds
 * Extension of the RHI’s budget management mechanism until the end of 2020/21


2017 READ MORE

On 31 July 2017, the Department for Business, Energy & Industrial Strategy
(BEIS) introduced a change to the Domestic RHI Regulations to reflect the latest
version of the Microgeneration Certification Scheme (MCS) installation standard
for heat pumps:

 * Version 5.0 of MIS 3005 of the MCS standards was introduced by MCS on 28
   April 2017; taking effect from 17 May 2017. From 30 October 2017 onwards,
   heat pumps must be installed in accordance with this version of the MCS
   standards.
 * Where contracts have been signed for installations in accordance with version
   4.3 of MIS 3005 prior to 30th October 2017, the system may be installed in
   accordance with version 4.3 of MIS 3005 and could be eligible for DRHI if
   applying within 12 months of the first commissioning date.
 * Biomass tariff degression became effective in July 2017.

In September 2017:

 * heat demand limits were introduced for biomass systems, air source and ground
   source heat pumps.
 * BEIS announced tariff increases for three of the eligible renewable heating
   technology types for the scheme. There were no changes to tariff rates for
   solar thermal systems.


2016 READ MORE

In March 2016, the Government published a consultation on changes to the DRHI
scheme. The Department for Business, Energy & Industrial Strategy (BEIS)
published its consultation response on 14 December 2016. The consultation
response can be found on the BEIS website:The Renewable Heat Incentive: A
Reformed Scheme.

 * Applications submitted on or after 1 April 2016 had their tariffs adjusted in
   line with the Consumer Price Index (CPI) rather than the previous Retail
   Price Index (RPI) before 1 April 2016.

 * BEIS set the degression triggers for all technologies for degressions for the
   financial year 2016/17
 * Amended the land criteria to mirror similar provisions in the Renewables
   Obligations Order 2015 and Renewables Obligation (Scotland) Order 2009, in
   particular setting out what is meant by biomass being obtained from a
   “sustainable source”
 *  Provided clarity on the criteria which schemes must satisfy in order to
   demonstrate equivalence to the Microgeneration Certification Scheme (MCS).
 * Provided clarity on what is meant when a tariff is required to be rounded to
   a specified number of decimal places;
 * Provided clarity on Ofgem’s ability to request a new Energy Performance
   Certificate (EPC) and amend payments in line with new information.
 * Removed the need for a Green Deal Assessment report as an eligibility
   requirement for all future Domestic Renewable Heat Incentive (RHI) scheme
   applicants
 * Removed the requirement that eligible new self-build properties must be
   occupied for 183 days prior to application to the Domestic RHI scheme to
   allow scheme payments to be deemed not metered.
 *  Provided clarity that solar thermal collectors must not have been used
   before the plant’s first commissioning date.


2015 READ MORE

 * Existing and new participants with biomass technologies must use fuel that
   meets specific sustainability requirements. 
 * Existing and new participants with biomass must use fuel that meets specific
   sustainability requirements.
 * Introduced the Seasonal Coefficient of Performance (SCoP) calculator
 * Updated reference to the Microgeneration Certification Scheme (MCS) standards
 * Removal of the requirement for Social Landlords (SLs) to complete a Green
   Deal Assessment in order to be eligible for accreditation under the Domestic
   RHI scheme.
 * Introducing two new eligible technologies; cooker stoves and high temperature
   heat pumps.
 * An amendment was made to ensure it is clear that heating systems that provide
   heating to a domestic dwelling and related properties (e.g. shed, garage) are
   eligible to apply for the scheme but only the heat demand for the domestic
   dwelling will be eligible for payment.
 * An amendment was made to ensure those participants that have previously
   received grant funding to install their renewable heating system and are
   subject to adjusted payments are being counted in degression calculations
   correctly.
 * Minor amendments –In respect of the term “certified installer” and reference
   to the solar thermal standards.


2014 READ MORE

Effective 10 November 2014: See DECC’s amendments to scheme eligibility


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