Renewable Heat Incentive 2017

Back in mid December, the BEIS published it’s response to last years consultation on the reform of the RHI (Renewable Heat Incentive).

The changes will come into effect this year,  but what does that mean for you?

Renewable Heat Incentive 2017

The RHI tariff for biomass and air source heat pumps will rise by 53% and 33% respectively. There will be a slight 1% increase for ground source heat pumps, and solar thermal will remain unchanged.

If you installed a biomass or heat pump system before December 14th 2016, then your RHI payments will be unaffected.

If you installed after December 14th 2016, then you will automatically be put on the new tariffs when they come into effect, as will any new installs.

The changes are due to take place in ‘Spring 2017’, which is likely to be 1st April 2017, although this has not been confirmed.


 TariffTariff January-March 2017 (p/kWh)Percentage Increase (%)New tariff from

 1 April 2017 (p/kWh)

Heat demand limit (kWh) (new)
Biomass boilers and stoves4.21536.4425,000


Air source heat pump7.513310.0220,000


Ground source heat pump19.33119.5530,000


Solar thermal19.74019.74Doesn’t apply

Will there be any other changes?

  • annual heat demand limits will be put in place, as highlighted in the table above. You can still claim the RHI, but only for heat generated up to the limit for the technology.
  • electricity metering will be required for new air source heat pump (ASHP) and ground source heat pump (GSHP) installations to give consumers better information on the efficiency of their heat pumps. RHI payments will still be based on ‘deemed heat requirement’.
  • there will be 3 metering options;

electricity metering,

on – board electricity metering, or

metering and monitoring service package (MMSP).

Of the three options, the MMSP provides consumers with the most detailed data on the performance of their heat pump system.

  • ground source heat pumps with shared ground loops will not be eligible for the domestic RHI scheme, but will be eligible for the non-domestic scheme.
  • Ofgem RHI factsheet has more info.

If you’re not sure which technology is best for your home our homeowners section will give you all the information you need, or call us on 01726 390390