Explanatory note

These Regulations apply to Great Britain and amend the Renewable Heat Incentive Scheme Regulations 2011 (the “2011 Regulations”) and the Domestic Renewable Heat Incentive Scheme Regulations 2014 (the “2014 Regulations”). They make a number of changes to the 2011 Regulations including: aligning biomass tariffs; amendments to biomass tariff tiering; and changes to the total expenditure, technology-specific expenditure and related figures for assessment dates from 31st October 2017. They make a number of changes to the 2014 Regulations including: limits on the maximum amount of heat that is eligible for support; increasing the tariffs for all technologies except solar thermal; changes to the technology-specific expenditure and related figures for assessment dates from 31st October 2017.

Regulation 3 adds a definition for “fifth relevant date” as the date of coming into force of these Regulations.

Regulation 4 makes provision for the calculation of subsequent tariffs (tariffs from the 1st April following the date of accreditation or registration) for large biomass plants on or after the fifth relevant date, amends the threshold for the tier 2 tariff for small and medium biomass and introduces tariff tiering for large biomass and makes changes that are consequential to these amendments.

Regulations 5 and 7 make changes that are consequential to the amendments in regulations 6 and 8.

Regulation 6 makes provision for the calculation of initial tariffs (tariffs between the date of accreditation or registration and the following 31st March) for certain installations and producers of biomethane for injection with tariff start dates before 1st January 2018. Where a large biomass plant accredits to the scheme on or after 1st April 2017 but before the fifth relevant date, the initial tariff is replaced with the relevant tariff in the new Schedule 3D from the fifth relevant date. Where an RHI installation or a producer of biomethane for injection accredits or registers to the scheme on or after the fifth relevant date but before 1st January 2018, the initial tariff is the relevant tariff in the new Schedule 3D.

Regulation 8 makes provision for the calculation of initial tariffs for installations and producers of biomethane for injection with tariff start dates on or after 1st January 2018.

Regulation 9 inserts Schedule 3D into the 2011 Regulations with a new tariff table.

Regulations 10 and 11 amend Schedules 4 and 5 to the 2011 Regulations to provide total expenditure, technology-specific expenditure, and related figures for assessment dates from 31st October 2017 up to 30th April 2018 and for any assessment date after 30th July 2018. Reductions in initial tariffs are triggered when the specified thresholds for forecast expenditure or growth in forecast expenditure are exceeded. Assessment dates are the dates to which data are provided by Ofgem for the purposes of determining whether there will be a reduction in initial tariffs for installations or producers of biomethane accrediting or registering in the next tariff period commencing 1st January, 1st April, 1st July or 1st October in any year.

Regulation 13 adds a definition for “second relevant date” as the date of coming into force of these Regulations and also amends the definitions of “initial tariff” and “subsequent tariff”.

Regulation 14 makes provision for determining what the applicable initial tariff or subsequent tariff is when calculating an accredited domestic plant’s RHI payment for a quarterly period that straddles the second relevant date.

Regulation 15 amends the calculation of deemed annual heat generation by introducing technology-specific limits for ground source heat pumps, air source heat pumps, and biomass plants on the amount of heat generated by the plant that is eligible for RHI payments each year.

Regulation 16 provides that notwithstanding that the start date for an accredited domestic plant’s tariff may fall into the period beginning on 1st April 2017 and ending on the day before these Regulations come into force, that plant’s initial tariff for the period starting on the second relevant date and ending on 31st March 2018 will be replaced with that set out in the new Schedule 5A (new tariffs) to the 2014 Regulations. Where an accredited domestic plant’s tariff start date falls into the period beginning on the second relevant date and ending on 31st December 2017, that plant’s initial tariff will be that set out in the new Schedule 5A to the 2014 Regulations.

Regulation 17 amends regulation 35 of the 2014 Regulations in consequence of the insertion of Schedule 5A to the 2014 Regulations.

Regulation 18 makes amendments to the calculation of a plant’s subsequent tariff and makes provision for plants (except for solar thermal plants) whose tariff start date is on or after 14th December 2016 but before 1st April 2017 to be able to receive the higher tariffs in the new Schedule 5A to the 2014 Regulations.

Regulation 19 inserts Schedule 5A to the 2014 Regulations with a table of new technology specific-tariffs. Except for solar thermal, the technology-specific tariffs are increased.

Regulation 20 amends Schedule 6 to the 2014 Regulations to provide technology-specific expenditure and related figures for assessment dates from 31st October 2017 up to 30th April 2018 and for any assessment date after 30th July 2018. Reductions in initial tariffs are triggered when the specified thresholds for forecast expenditure or growth in forecast expenditure are exceeded. Assessment dates are the dates to which data are provided by Ofgem for the purposes of determining whether there will be a reduction in initial tariffs for installations accrediting in the next tariff period commencing 1st January, 1st April, 1st July or 1st October in any year.

The Explanatory Memorandum will be published alongside the instrument on www.legislation.gov.uk.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.