On 30th August, the first part of the RHI Reform package consulted on in March 2016 and confirmed in Dec 2016 has been enacted. Further information can be obtained from our consultant Graham Hazell who will also give an update at the next plenary meeting on 20th November 2017.

This first phase concentrates on the increased tariff for Dom-ASHP and the imposition of Heat Demand Limits which are eligible for RHU payments.

The second package has been delayed due to lack of parliamentary time as a result of Brexit. The second phase is likely to include:

Domestic:

  • Mandatory electrical metering.
  • Assignment of rights (i.e. RHI payments to third parties to allow funding input).

Non-Domestic:

  • Deeming of energy for payment for individual dwellings on Shared Ground Loops (SGL)
  • Tariff guarantees for GSHP >100kW

Tariff Guarantees

The HPA have engaged in the discussions in favour of tariff guarantees since their inception some 2-3 years ago. We were instrumental in the threshold for GSHP being reduced from >500kW projects to >100kW on the basis of the investment required. We lobbied long and hard for a similar arrangement for ASHP >300kW (on the basis this was the typical cost ratio difference) but were ultimately unsuccessful.

Our opinion is that recent draft tariff guarantee proposals strike a sensible balance between providing reassurance for both investors but also the limited government funds available and protecting the scheme from imbalance, being rendered impotent or worst premature scheme closure.