What are tariffs?

These set the rate for your Domestic Renewable Heat Incentive (Domestic RHI) payments. People who join the scheme and stick to its rules, receive quarterly payments for seven years for using clean, green renewable heat.

As scheme administrators, we are responsible for publishing the current tariff rates set by the Department of Energy and Climate Change (DECC). You can see these in the table below.

Domestic RHI tariff rates

Tariff per kilowatt hour renewable heat

Biomass boilers and biomass stoves

Air source heat pumps

Ground source heat pumps

Solar thermal

Tariff for legacy applicants

12.20p

7.30p

18.80p

19.20p

Tariffs for technologies commissioned on or after 9 April 2014:

Applications submitted:
09/04/14-30/06/14
01/07/14-30/09/14
01/10/14-31/12/14

12.20p 7.30p 18.80p 19.20p

Applications submitted:
01/01/15-31/03/15

10.98p* 7.30p 18.80p 19.20p

Applications submitted:
01/04/15-30/06/15

Any tariff changes due to digression to be announced by DECC by 1 March 2015. Tariffs to be updated on Ofgem website by 15 March 2015

*Due to digression, the biomass tariff changed to 10.98p for applications made from 1 January 2015. Legacy applicants are not affected by digression and the tariff will remain at 12.20p for them.

Scheme budget management (digression)

The Domestic RHI tariffs are set by the Department of Energy and Climate Change (DECC). They have to keep the Domestic RHI within budget and they do this by lowering the tariff rates for  new applicants. This is called ‘digression’ and it happens if uptake of the scheme is higher than the approved budget.

Tariffs are subject to review every quarter, but the tariff rate will only reduce if the total amount of payments made is higher than the digression trigger or super-trigger. If a tariff reduction is due to take place, we’ll let you know about it as soon as possible after DECC have published it on their website. DECC recently announced a tariff reduction for biomass because payments passed the digression trigger. From 1 January 2015, the biomass tariff changed to 10.98p per kilowatt hour.

Legacy applications (for installations commissioned before the scheme launched) are not affected by digression and therefore the biomass tariff will remain at 12.2p for these . They have until the 8 April 2015 to apply.

A tariff reduction only affects people who are applying after the digression date. If you submit a complete application to us before the reduction takes place you will not be affected if your application is successful. We base your tariff on the submission date (the date you submit the application, not the date you are accredited). This means that if your application is still being reviewed when digression comes into effect, you won’t lose out. If you are having technical problems submitting your application before a digression date, please contact us in writing in advance.

 

Will my tariff rate change once I have joined?

Once you've joined the Domestic RHI, your technology will stay on the same tariff rate for the full 7 years of membership. If you have more than one accreditation, eg landlords, the tariffs will be based on when each successful application was made.

The only change will be to bring your payments in line with the Retail Price Index (RPI). This is announced on 1 April each year.

Source: https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive/about-domestic-rhi/tariffs-and-payments-domestic-renewable-heat-incentive