Consultation outcome

Non-domestic Renewable Heat Incentive: ensuring a sustainable scheme

• From: Department for Business, Energy & Industrial Strategy
• Published: 28 April 2020
• Last updated: 14 January 2021 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

Non-Domestic Renewable Heat Incentive: ensuring a sustainable scheme - government response

PDF, 335 KB, 29 pages

Detail of outcome

Based on the consultation responses and work with the scheme administrator Ofgem, we intend to proceed with the majority of the proposals outlined in the consultation:

• the NDRHI will close on 31 March 2021 as we are transitioning to future support schemes that most strategically target tax-payers money
• heat pumps: allowing the modification of capacity for shared ground loop (SGL) systems, so participants can receive NDRHI payments without requiring the total capacity to commission all at once
• biogas and biomethane:
  • allowing the transfer of registration of production to introduce fluidity in the biomethane market
  • introducing provisions on the use of fossil fuels in anaerobic digestion to ensure accurate carbon savings
  • enabling NDRHI participants to also claim on DfT’s Renewable Transport Fuel Obligation scheme, to incentivise biomethane production
• biomass: mandating participants to comply with a fuel quality standard and to carry out annual maintenance checks on their biomass boilers in order to increase efficiency and improve air quality emissions. We will not restrict the burning of waste-wood in biomass boilers since existing processes already provide a good enforcement regime for waste-wood

Detail of feedback received

We received 132 responses from industry and the wider public.

Most were broadly supportive of our measures, though a variety of concerns and recommendations were highlighted by respondents.

---

Original consultation

Summary

We're seeking views on the closure of the non-domestic Renewable Heat Incentive (NDRHI) scheme to new applicants, and how to future-proof the scheme for the remainder of the payment period.

This consultation ran from
10:30am on 28 April 2020 to 11:45pm on 7 July 2020

Consultation description

We’re seeking your views in preparation for the formal closure of the non-domestic Renewable Heat Incentive (NDRHI) scheme to new applicants.

The proposed reforms aim to ensure the scheme continues to:

• offer ongoing value for money to the taxpayer
• improve the experience of participants
• maximise the contribution the NDRHI makes to the decarbonisation of heating in the UK

The government also wants to ensure that the scheme continues to be managed robustly.

We welcome views on the proposed reforms from:

• industry
• representative groups
• installers
• general public

Related documents

Alongside this consultation we have published:

• a consultation on the Future support for low carbon heat
• an outline of Changes to the Renewable Heat Incentive (RHI) schemes

Please do not send responses by post to the department during the coronavirus lockdown period as we will not be able to access them.

Documents

The Non-Domestic Renewable Heat Incentive: ensuring a sustainable scheme

PDF, 630 KB, 24 pages

Impact Assessment

PDF, 776 KB, 33 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@beis.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 28 April 2020
Last updated 14 January 2021 + show all updates

1. 14 January 2021

   Government response published.

2. 28 April 2020

   First published.