Latest Tariff announcement: BEIS announced on 1 June 2020 that there will be no degression on 1 July 2020.
Click to view the latest tariff rates and degression announcements for the Domestic RHI scheme.
Tariffs set the rate for your Renewable Heat Incentive (RHI) payments. People who join the scheme and stick to its rules receive quarterly payments over seven years. The rates are set by the Department for Business, Energy and Industrial Strategy (BEIS). You can view budget announcements on their website.
On 1 May 2020, we changed the way that we make RHI payments. We will continue to make your payments on a quarterly basis, but the date on which you receive them may be slightly later than the calendar date you were used to. We expect that you will receive payments within 1-2 weeks of the due date shown on your MyRHI account. Please consider any changes that you may need to make to accommodate this (for example, changing the date of direct debits coming out of your account).
How the Retail Price Index (RPI) and Consumer Price Index (CPI) affect tariffs
During your seven years’ scheme membership your tariff rate changes in line with Retail Prices Index (RPI) or Consumer Prices Index (CPI), calculated in April each year. It does not change for any other reason. These updates will happen automatically and you can view them in MyRHI. Log in to see them in your payment schedule.
Applications submitted before 1 April 2016 have their tariffs adjusted in line with the Retail Price Index (RPI).
Applications submitted on or after 1 April 2016 have their tariffs adjusted in line with the Consumer Price Index (CPI).
Scheme budget management (degression)
The Department of Business, Energy and Industrial Strategy (BEIS), formerly known as the Department for Energy and Climate Change (DECC) has to keep the Domestic RHI scheme within budget. Sometimes, they lower the tariff rates for new applicants if payment amounts are higher than a set threshold. This is called Degression.
Tariffs are reviewed every quarter, but the rate will only reduce if the total amount of payments made is higher than the degression trigger or super-trigger. If a tariff reduction is due to take place, we publish it as soon as possible.
A tariff reduction only affects people who are applying after the degression date. If you submit a complete application to us before the reduction takes place you won’t be affected if your application is successful. We base your tariff on the submission date (the date you submit the application, not the date you officially join the scheme). This means that if your application is still being reviewed when degression comes into effect, you won’t lose out. If you’re having technical problems submitting your application before a degression date, please contact us in writing in advance.
Compliance and Fraud
During each degression period we carry out increased monitoring to ensure that the information applicants provide us with at application is accurate. For further information on our counter fraud processes and approach, see our Counter fraud for environmental and social programmes webpage.
To find out more, see:
- Factsheet: Tariffs and Payments
- Key terms explained for the Domestic RHI
- Public reports and data: Domestic RHI
- Who to contact