Explanatory note

These Regulations amend the Domestic Renewable Heat Incentive Scheme Regulations 2014 (S.I. 2014/928) (“the 2014 Regulations”) and the Renewable Heat Incentive Scheme Regulations 2018 (S.I. 2018/611) (“the 2018 Regulations”). The 2014 Regulations and 2018 Regulations create schemes under which owners of plants which generate heat from specified renewable sources and meet specified criteria, and producers of biomethane for injection, may receive payments at prescribed tariffs for heat used for eligible purposes.

Regulation 2 amends Schedule 6 to the 2014 Regulations by substituting tables used to calculate the initial tariff for the Domestic Renewable Heat Incentive Scheme.

Regulation 3(2) amends regulation 35 of the 2018 Regulations in relation to tariff guarantees granted under the Non-Domestic Renewable Heat Incentive Scheme.

Regulation 3(2)(a) specifies 31st March 2021 as the last date by which the Authority can require an applicant for a tariff guarantee to submit financial close information.

Regulation 3(2)(b) provides for an extended commissioning deadline of 31st March 2022 to apply in respect of any application for a tariff guarantee which was made on or after 17th July 2019 and before 29th June 2020. Regulation 3(2)(c) provides for the extended commissioning deadline to apply in respect of any such application where, before the coming into force of these Regulations, the tariff guarantee was revoked due to the applicant not meeting the earlier commissioning deadline.

The amendments in regulation 3(2)(d) and (e) relate to the circumstances in which a guaranteed tariff does not apply. Regulation 3(2)(d) provides for the rules in regulation 35(11A) to continue to apply in respect of applications made on or after 29th June 2020 and before 20th July 2020. Regulation 3(2)(e) sets out the rules that apply to new applications. These rules also apply to applications made on or after 17th July 2019 and before 29th June 2020.

Regulation 3(2)(f) provides for budget caps for the financial years 2021/2022 and 2022/2023 and provides for a budget allocation for particular technologies.

Regulation 3(3) amends regulation 59 of the 2018 Regulations to provide for a shorter tariff lifetime for periodic payments made to a participant with a tariff start date later than 31st March 2021.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from the Clean Heat Directorate, Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London SW1H 0ET and is available alongside the instrument on www.legislation.gov.uk.