RHI extended till 2022

RHI extended till 2022

The Renewable Heat Incentive (“RHI”), is a traiif paid directly from Government (OFGEM) to any who installs a renewable heat technology such as ground source heat pumps and air source heat pumps.

Up until now, the RHI was due to end in 2021. The recent budget has extended this to March 2022.

Interestingly they also signalled some new significant policy directions:

  • Low carbon heating support scheme
  • Tax on gas

Low Carbon Heating Support

While the RHI is extended the UK Government have indicated they are looking at a replacement scheme – most likely a direct grant for the upfront cost of installing a heat pump. Lots of detail to work out but still good news as it recognises the important role in renewable heat in the countries path to net zero. 

Tax on Gas

Up to now there has been no added tax on gas – unlike electricity which had the Climate Change Levy. Now the treasury has announced they will introduce a “Green Gas Levy” on energy suppliers who supply gas. As with all levies, the costs will be passed down to gas bills. A small shift but significant in that the external carbon and air pollution costs of gas are finally being recognised in the tax system. 

This Post Has 2 Comments

  1. Geoffrey Brown

    My Biomass system was installed in 2014 & was registered for RHI payments. I was told that payments would be for 7 years, til 2021. I see that the scheme has been extended to 2022 so does this mean that I will continue to receive payments for a further 13 months?
    Thanks
    Geoff Brown

    1. Hi Geoff – if you already on the scheme you get the 7 years of payments (so it will end for you in 2021). It is extended new applicants that can join the scheme before March 2022 (ie install this year their payments end in 2028).

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