In March 2016, the Government published a consultation on changes to the Domestic Renewable Heat Incentive (RHI) scheme. After taking into account of the feedback it received, the Department for Business, Energy & Industrial Strategy (BEIS) published its consultation response on 14 December 2016. Subject to Parliamentary approval, it’s planned that these changes will be introduced in two stages.
The first stage of changes came into effect on 20 September 2017. You can read the amending regulations here. For full details about what the Government changes mean for you, please see our webpage changes to the scheme.
Subject to Parliamentary approval, it’s planned for the second stage of regulation amendments to follow later in 2017/2018. When the second stage of changes come into effect later in 2017/2018, all new accreditation applications for heat pumps to the Domestic RHI scheme will be required to have electricity metering arrangements installed alongside their heating system.
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 the Department for Business, Energy & Industrial Strategy (BEIS).
There are two types of metering that can be required on the Domestic Renewable Heat Incentive (RHI) scheme: metering for performance* and metering for payment*. There are a few different situations where you may need to install one or both types of meters to meet the requirements of the scheme.
Solar thermal systems never have to be metered, so if you just have solar thermal you don’t need to read this page.
Metering for payment
This only applies to Domestic RHI applicants with biomass, air source heat pump and ground source heat pump systems.
If your heating system is accredited to the scheme and requires metering for payment, to receive payments you’ll need to submit meter readings every three months and meet your other ongoing obligations throughout the seven years that your heating system is accredited under the scheme. Your payments will not be “deemed”, but instead will be calculated based on your meter readings.
Metered applicants are paid on the renewable heat that they produce, but from 20 September 2017, the maximum annual payments are capped at the deemed annual heat demand of your property based on the figure in your EPC, - or the relevant new heat demand limit* - whichever is lower.
Below we’ve set out the three most common situations where you’ll need to have meters for payment.
Where you need to be metered for payment
The most common situations in which you’ll need to be metered for payment are:
- If you have “back-up heating”.
- Where you have a biomass heating system that isn’t designed to heat the whole property.
- Where your property is occupied for less than half the year.
Please note this list is not exhaustive. For full details and examples, please read our Factsheet: Do I need metering?
Metering for performance
This section only applies to all new Domestic RHI applicants with heat pumps after planned regulations come into force later in 2017/2018.
The Government plans to introduce the second stage of changes to the Domestic Renewable Heat Incentive (RHI) Scheme Regulations later in 2017/2018. If you apply and are successfully accredited to the Domestic RHI on or after the day these new regulations come into force, all new applications for air source heat pumps and ground source heat pumps will be required to have electricity metering arrangements alongside their heating systems to be eligible for the scheme.
If your heat pump is metered for payment, you’re already required to have electricity meters and heat meters, which will fulfil your requirements for metering for performance. You won’t need to install further electricity metering for performance.
If you’re only required to have meters for performance, your Domestic RHI payments will continue to be based on the deemed annual heat demand of your property based on the figure in your Energy Performance Certificate (EPC) open key term pop-up – or the relevant new heat demand limit* - whichever is lower. Payments for heat pumps will continue to be made only on the renewable portion of the heat demand.
If you require metering for performance, you have three electricity metering options:
- standalone electricity metering*
- on-board electricity metering*
- Metering and Monitoring Service Package (MMSP).
* To learn more about this term, please see our Factsheet: Important Changes to the Domestic RHI Scheme.