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On 30th August, the Department for Business, Energy and Industrial Strategy (BEIS) laid amendments to the Renewable Heat Incentive (RHI) which include increased tariffs and the introduction of heat demand limits for domestic heat pump and biomass installations. These regulations will come into force on 20th September 2017.

Heat pump and biomass applications submitted to the domestic scheme on or after 14th December 2016 and before 20th September, will have their tariff uplifted to the new tariffs from 20th September 2017.

For applications submitted to the domestic scheme on or after 20th September, the new tariffs and heat demand limits will apply.

Homes with an annual heat demand listed on the Energy Performance Certificate (EPC) above the limit will be eligible for the RHI, but their payments will be calculated using the annual heat demand limit. Payments will continue to be made on the renewable proportion of the heat demand, in line with current rules. This means that, for example, an ASHP with a Seasonal Performance Factor (SPF) of 3.0 will have an effective heat demand limit of 13,333kWh (2/3 of 20,000kWh) as 2/3 of the heat produced is considered renewable. Heat pumps with higher SPFs will therefore be eligible for a larger proportion of the heat demand limit.

New domestic RHI tariff rates and annual heat demand limits:

 Technology Type New Tariff (pence/kWh) 
 Air Source Heat Pumps  10.18
 Ground Source Heat Pumps 19.86
Biomass 6.54


 Technology Type Heat Demand Limits (kWh)
 Air Source Heat Pumps  20,000
 Ground Source Heat Pumps 30,000
Biomass 25,000


MCS Heat Pump Installer Standard MIS 3005 Issue 5.0

On 31st July 2017 the RHI Regulations have also been amended to reference the new issue of MIS 3005 Issue 5.0. MCS will shortly publish the supporting documents required to install heat pumps in accordance with this new version of the standard. In line with this, detailed guidance will be provided to installers on which version of the standard should be used for the installation to be potentially eligible for the RHI.