Consultation outcome

The Non-domestic Renewable Heat Incentive: further proposed amendments

From:: Department for Business, Energy & Industrial Strategy
Published: 5 September 2017
Last updated: 29 May 2018 — See all updates

Read the full outcome

Non-domestic Renewable Heat Incentive: government response (Chapter 2, eligible heat uses)

PDF, 773 KB, 19 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.

Non-domestic Renewable Heat Incentive: government response (Chapters 3-6)

PDF, 199 KB, 25 pages

Detail of outcome

Chapter 2

The document published on 29 January 2018 sets out the government’s decisions on eligible heat use reforms following consultation in chapter 2 of this consultation, and how these decisions will be implemented.

The government does not intend to remove all drying practices as eligible heat uses.

However the government will:

remove wood-fuel drying as an eligible heat use other than where the renewable heat installation is replacing a fossil fuel heat source. A transition period will be included to allow wood-fuel drying plant that are in development to be accredited
remove the drying, cleaning or processing of waste as an eligible heat use
further tighten the RHI rules in relation to the eligibility of swimming pools and single non-domestic properties

Chapters 3 to 6

The document, published on 29 May 2018, sets out the government’s decisions on the following issues:

Very Large Plant
Multiple installations
Registering to inject biomethane
Environmental permitting
Replacement plant
Estimated data

It also includes information on some additional measures to accompany the introduction of assignment of rights on the domestic RHI scheme.

The government response confirms the following decisions to:

remove the process of staggered commissioning for biomethane installations
allow replacement where an original installation breaks down
amend the circumstances under which ‘estimated data’ can be submitted
clarify that RHI installations must have the necessary environmental permits
strengthen the introduction of assignment of rights on the Domestic RHI by clarifying who may act as an investor
limit payable heat from very large plant to 250GWh per annum
combine multiple plant on one site for tariff purposes

Detail of feedback received

The government received 115 responses to the eligible heat use reforms in Chapter 2 of the consultation.

There were a total of 108 responses to the reforms proposed in chapters 3 to 6 of the consultation.

Respondents included:

individuals
businesses
trade bodies
other organisations

Original consultation

Consultation description

This consultation covers proposals relating to eligible heat uses, very large plant, multiple installations, rules relating to biomethane plant as well as a range of other cross cutting scheme issues.

The Non-domestic Renewable Heat Incentive (RHI) was introduced to bridge the gap between the cost of renewable heating systems and conventional alternatives. It is open to business, public sector and non-profit organisations.

The government is keen to ensure that the Non-domestic RHI continues to contribute to both our decarbonisation targets and to the UK’s renewable energy target whilst ensuring that the scheme offers good value for money.

We made a commitment in the response to the 2016 consultation The Renewable Heat Incentive: A reformed and refocused scheme to undertake further detailed work on eligible heat uses and to consult on subsidy limits for very large plant. The proposals on these issues are set out in this consultation.

There are also some additional proposals on multiple installations, proposals relating to biomethane plant and a number of cross-cutting issues such as environmental permitting, replacement plant and the use of estimated data.

Deadline for responses on Eligible Heat Uses (chapter 2)

3 October 2017 </div> Subject to the content of responses received, we may make policy amendments on this issue ahead of its response to the proposals raised elsewhere in this consultation. This is because we previously asked for evidence on this point in the December 2016 response. The deadline for responses to all other questions is 31 October 2017.

Documents