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Changes to the Non-domestic Renewable Heat Incentive scheme

Objectives of the consultation

This consultation set out proposed changes to the Non-domestic Renewable Heat Incentive scheme, which aim to:

  • future-proof the scheme following its closure to new applicants and continue to maximise the contribution the scheme makes to the decarbonisation of heating in the UK,
  • improve the consumer experience for existing participants on the scheme,
  • ensure robust management of the scheme for existing participants for the remainder of the payment period,
  • deliver ongoing value for money to taxpayers.

The Government also announced a flexible third allocation of Tariff Guarantees on the Non-domestic RHI. Additionally, there will be an extension to commissioning deadlines for projects with existing Tariff Guarantees under the 2nd allocation in order to aid these projects in light of COVID-19 related delays.

The domestic scheme will continue in its current form. There will be no immediate changes to scheme eligibility criteria or ongoing obligations for new or existing participants.

This consultation closed on 7 July 2020.

Supporting papers

To download documents, which supported this consultation, follow the links below.

CIBSE response

This consultation on changes to the non-domestic RHI scheme is intrinsically linked with the consultation on future support for low carbon heat and CIBSE submitted one response to both consultations. 

The proposals in these two consultations can only properly be gauged in their overall context including regulations, incentives and support mechanisms. We understand this will be set in the heat strategy which is expected later this year and which is very much needed. Without this context, CIBSE do not feel it is possible nor effective to make meaningful and detailed comments on the proposals.

We understand the need to respond to the current uncertainty about policy and incentives post-RHI, and indeed we have recommended for over two years that the post-RHI situation should be clarified. However, the current measures introduce significant changes to the current support system, without providing a long-term view and the certainty needed for consumers and supply chains. It is very likely that the current disruption caused by the COVID-19 outbreak will further undermine confidence and supply chains. We therefore recommend that government should:

  • produce the clean heat strategy as soon as possible,
  • in the meantime and until the strategy is implemented, simply extend the RHI (domestic and non-domestic) to prevent a period of complete vacuum as a COVID-19 recovery measure.

Other than a small number of questions in each consultation, we have therefore not responded to individual questions in detail, but instead have structured our recommendations against key themes, including clean heat strategy and low-carbon heat competence.

To read the CIBSE response, follow the link below: