New Regulations introduced by Ofgem mean that from 1st October 2018 customers can replace existing renewable energy plant with new – and continue to receive original RHI tariff
From 1st October 2018, Ofgem introduced an amendment to the regulations to allow existing participants of the Non-Domestic RHI scheme to replace their existing plant while staying on their original RHI tariff for the remainder of their term.
This means that biomass boilers or heat pumps which are no longer working at their full potential or have become faulty can be replaced with no loss in RHI payments.
The replacement plant must be a new ‘like-for-like’ replacement. This means that the technology type and capacity must remain the same for the RHI payments to remain the same.
The new plant will need to meet the same accreditation criteria as that of the original installation with one exception. This is that all replacement biomass boilers will be required to meet current air quality requirements.
Replacement plant remains on the RHI tariff for any capacity up to the original. Increased capacity will not receive an increase in RHI tariff, so payments will remain at the original level.
Where the capacity of the new boiler or heat pump is less than the original, the threshold for Tier 1 payments will be calculated in line with the replacement plant capacity. Where the capacity of a replacement plant is less than the original and crosses a tariff boundary, the tariff will still be that which would have applied to the original plant had it not been replaced.
- New Ofgem Regulations from 1 October 2018.
- Replace existing biomass/heat pump ‘like for like’ and remain on existing RHI tariff for the remainder of the term.
- Benefit from a completely new and efficient system with no loss to RHI payments
- Must be same technology and capacity to continue same tariff (where increased capacity installed, no increase in RHI tariff)
- Where reduced installed, the threshold for Tier 1 payments will be calculated in line with the replacement plant capacity.