DRAFT REGULATIONS: The Renewable Heat Incentive Scheme Regulations 2018

The draft Regulations, which apply to Great Britain, revoke and replace The Renewable Heat Incentive Scheme Regulations 2011 (2011 Regulations), which established a renewable heat incentive scheme (the Scheme).

These Regulations re-enact the 2011 Regulations with amendments. The premise of the Scheme remains the same: owners of plants which generate heat from specified renewable sources and meet specified criteria may receive payments at prescribed tariffs for the heat used for eligible purposes.

Additionally, payments may be made to bio-methane producers who produce bio-methane for injection. The Regulations confer functions on the Gas and Electricity Markets Authority (ofgem) in connection with the administration of the Scheme.

In addition to minor and drafting amendments, the draft Regulations make the following changes of substance:

• Heating a swimming pool other than one which used for commercial or municipal purposes
• Drying digestate or woodfuel, and drying
• Cleaning or processing certain waste, will no longer be eligible heat uses
• provision is made for shared ground loop systems, in particular that payments will be based on deemed heat generation (as opposed to metered heat generation) where ground source heat pumps which form part of such systems are installed in domestic premises
• Any necessary planning permission will be required as part of the eligibility criteria
• Owners of specified technologies will be eligible to apply for a tariff guarantee, subject to a budget allocation for tariff guarantees set by the Secretary of State
• Tariffs will be increased for heat generated by biogas installations and bio-methane producers; and payments to owners of installations generating heat from biogas and to bio-methane producers will be reduced where less than 50% of the biogas produced derives from waste or residue.

A copy of the draft Renewable Heat Incentive Scheme Regulations 2018 can be freely downloaded here.