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Notice: Changes to the Renewable Heat Incentive (RHI) schemes

This notice outlines the government’s intention to make changes to the existing Renewable Heat Incentive schemes in the light of coronavirus:

  • to ensure a smooth transition to future support schemes for low carbon heat
  • to ensure non-domestic RHI projects can meet their commissioning deadlines
  • to provide additional time for domestic RHI and tariff guarantee (TG) eligible technologies to access RHI funding

The proposals

  • to extend the domestic Renewable Heat Incentive scheme until 31 March 2022
  • to introduce a third allocation of flexible tariff guarantees under the non-domestic Renewable Heat Incentive scheme
  • to extend the commissioning deadlines for projects currently holding a Tariff Guarantee until at least mid-March 2021

Government response

Most of the 15 responses were broadly supportive of the proposals, although they highlighted some concerns and recommendations.

As a result, we intend to proceed with the proposals, with some amendments. The changes will provide support to businesses, many of which are small and medium-sized UK enterprises, including manufacturers, installers, and project developers in the low carbon heating sector. This will support job creation at a time when economic recovery is so important.

We continue to consider what other changes may need to be made to deal with coronavirus related delays.

Alongside this notice we published 2 consultations which close on 7 July 2020: