Regulation issues 'likely to delay RHI reform'

Published:  12 April, 2017

Although the 2017 reform of the Renewable Heat Incentive (RHI) Regulations were placed before Parliament on 14 March 2017, according to the Heat Pump Association (HPA), drafting issues with the Non-Domestic Regulations mean the reform is unlikely to be implemented until the end of June.

While this delay is far from ideal, the HPA believes it could still prove beneficial for those hoping to complete projects with high heat demands.

Heat demand limits are being introduced in the reform package, in an attempt to limit the possibility of high rates of return for large projects with economies of scale.

HPA president Mike Nankivell said: "This delay offers some breathing space to complete larger domestic installations prior to the introduction of heat demand limits, while still benefiting from the new tariff rates.

"The delay to the potential tariff guarantees for non-domestic ground source heat pump projects over 100kW is unfortunate but hopefully this will not significantly impact on the industry."

The HPA has ascertained that the actual policy as previously outlined will not change, merely the wording of the law. The Association is continuing to highlight the positive impact of the RHI and advises the Department for Business, Energy & Industrial Strategy (BEIS) on its benefits to industry.

Ofgem has now published three guidance documents around the spring/summer 2017 RHI regulations changes and these can be accessed through the following links:

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