Proposed Changes to the Domestic Renewable Heat Incentive (RHI), December 2016

Proposed Changes to the Domestic Renewable Heat Incentive (RHI), December 2016

On December 14th, the UK government set forth several proposed changes to the existing domestic Renewable Heat Incentive scheme, which they intend to implement in the spring of next year. The proposed changes to the scheme, which was launched in April 2014 and aims to encourage continued installation of renewable heating systems among householders and businesses – namely Solar Panels and Biomass Boilers, in addition to Air Source Heat Pumps (ASHP) and Ground Source Heat Pumps (GSHP) – by providing financial incentives, are as follows:


Current Tariff Proposed Tariff Percentage Increase
Air Source Heat Pumps 7.42 pence per kilowatt-hour (p/kWh) 10.02p/kWh 35%
Ground Source Heat Pumps 19.10p/kWh 19.55p/kWh 2.36%
Biomass Boilers 5.14p/kWh 6.44p/kWh 25.29%


These proposals are fantastic news for anybody looking for a greener, more cost-effective alternative to traditional oil and gas boilers, such as Air and Ground Source Heat Pumps, which can be used particularly effectively in conjunction with underfloor heating on all ground floor areas, using lower heat to provide the highest level of comfort heating achievable. As AES National Managing Director, Marcus Horner, comments, “We are incredibly proud to be able to provide renewable heating systems for our customers, as they not only helps them to save money on their heating bills and reduce their carbon footprint, but also helps them meet Standard Assessment Procedure ratings. The recently-proposed changes to the Renewable Heating Incentive provide an even bigger incentive to take the plunge into renewable heating, and as long-time advocates of these systems, we are thrilled that our existing customers will shortly be seeing an even bigger reward for their investment.”


In addition to the tariff increases outlined above, domestic heat demand limits have been proposed, which will limit the level of support any household can expect to receive in terms of their heat demand. These limits have been proposed at 20,000kWh for Air Source Heat Pumps, 25,000kWh for Biomass Boilers, and 30,000kWh for Ground Source Heat Pumps. No limits have been proposed for Solar Panels. As such, all new Air and Ground Source Heat Pump users that apply for support would be required to have their property’s heating requirements monitored via electricity metering.


If you have any questions about these heat demand limits, or would like a free quotation, get in touch with our friendly and helpful staff by calling 01473 320 350 or emailing – We look forward to hearing from you.








Posted in: AES Renewables, Blog

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