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The Renewable Heat Incentive Scheme and Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2019

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Statutory Instruments

2019 No. 1052

Energy

The Renewable Heat Incentive Scheme and Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2019

Made

11:00 a.m. on 26th June 2019

Laid before Parliament

2:00 p.m. on 26th June 2019

Coming into force

17th July 2019

The Secretary of State makes the following Regulations in exercise of the powers conferred by sections 100(1), 100(2)(a) and (b) and 104(2) of the Energy Act 2008(1).

In accordance with section 100(7) of that Act, the Secretary of State has obtained the consent of the Scottish Ministers to the making of these Regulations.

PART 1Introduction

Citation and commencement

1.  These Regulations may be cited as the Renewable Heat Incentive Scheme and Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2019 and come into force on 17th July 2019.

PART 2Amendments to the Domestic Renewable Heat Incentive Scheme Regulations 2014

Amendments to the Domestic Renewable Heat Incentive Scheme Regulations 2014

2.  The Domestic Renewable Heat Incentive Scheme Regulations 2014(2) are amended in accordance with this Part.

Amendments to Schedule 6 (expenditure for individual technologies)

3.—(1) Schedule 6 is amended as follows.

(2) In Part 1 (biomass plants), for Table 1 substitute—

Table 1

Assessment DateExpenditure thresholdGrowth thresholdSuper expenditure thresholdSuper growth threshold
31st July 2019£46.82m£0.66m£50.15m£0.93m
31st October 2019£47.48m£0.66m£51.09m£0.94m
31st January 2020£48.18m£0.70m£52.06m£0.97m
30th April 2020£48.94m£0.76m£53.10m£1.04m
31st July 2020£49.70m£0.76m£54.14m£1.04m
31st October 2020£50.47m£0.77m£55.18m£1.04m
Any date after 30th January 2021£51.24m£0.77m£56.23m£1.05m

(3) In Part 2 (air source heat pumps), for Table 2 substitute—

Table 2

Assessment DateExpenditure thresholdGrowth thresholdSuper expenditure thresholdSuper growth threshold
31st July 2019£37.00m£3.50m£48.10m£5.00m
31st October 2019£40.50m£3.50m£53.10m£5.00m
31st January 2020£44.00m£3.50m£58.10m£5.00m
30th April 2020£47.50m£3.50m£63.10m£5.00m
31st July 2020£51.00m£3.50m£68.10m£5.00m
31st October 2020£54.50m£3.50m£73.10m£5.00m
Any date after 30th January 2021£58.00m£3.50m£78.10m£5.00m

(4) In Part 3 (ground source heat pumps), for Table 3 substitute—

Table 3

Assessment DateExpenditure thresholdGrowth thresholdSuper expenditure thresholdSuper growth threshold
31st July 2019£31.67m£1.56m£42.15m£2.43m
31st October 2019£33.24m£1.57m£44.60m£2.45m
31st January 2020£34.84m£1.60m£47.08m£2.48m
30th April 2020£36.48m£1.64m£49.59m£2.52m
31st July 2020£38.14m£1.66m£52.12m£2.53m
31st October 2020£39.80m£1.66m£54.66m£2.54m
Any date after 30th January 2021£41.48m£1.68m£57.21m£2.55m

(5) In Part 4 (solar thermal plants), for Table 4 substitute—

Table 4

Assessment DateExpenditure thresholdGrowth thresholdSuper expenditure thresholdSuper growth threshold
31st July 2019£1.65m£0.06m£2.28m£0.12m
31st October 2019£1.72m£0.07m£2.40m£0.12m
31st January 2020£1.79m£0.07m£2.52m£0.12m
30th April 2020£1.85m£0.06m£2.64m£0.12m
31st July 2020£1.92m£0.07m£2.75m£0.11m
31st October 2020£1.99m£0.07m£2.87m£0.12m
Any date after 30th January 2021£2.06m£0.07m£2.99m£0.12m

PART 3Amendments to the Renewable Heat Incentive Scheme Regulations 2018

Amendments to the Renewable Heat Incentive Scheme Regulations 2018

4.  The Renewable Heat Incentive Scheme Regulations 2018(3) are amended in accordance with this Part.

Amendments to regulation 35 (tariff guarantees)

5.—(1) In regulation 35(11), for “The” substitute “In relation to tariff guarantee applications made before 17th July 2019, the”.

(2) After regulation 35(11) insert—

(11A) In relation to tariff guarantee applications made on or after 17th July 2019, the guaranteed tariff does not apply where—

(a)the tariff start date in relation to an accredited RHI installation is earlier than the date given under paragraph (4)(b) or the tariff start date for a producer of biomethane for injection is earlier than the date given in accordance with paragraph (5)(a);

(b)the tariff guarantee has been revoked; or

(c)the tariff start date in relation to an accredited RHI installation or producer of biomethane for injection is—

(i)183 or more days after the date given in accordance with paragraph (4)(b) or (5)(a); or

(ii)after 31st January 2021,

whichever is the earlier..

Amendments to Schedule 7 (degression)

6.—(1) Schedule 7 is amended as follows.

(2) For Table 1 (total expenditure) substitute—

Table 1

Total expenditure

Assessment dateTotal expenditure anticipated for subsequent year £million
31st July 2019894.04
31st October 2019920.70
31st January 2020946.55
30th April 2020967.99
31st July 2020983.66
31st October 2020997.53
Any date after 30th January 20211,009.26

(3) For Table 2 (forecast for expenditure: plants which generate heat from solid biomass) substitute—

Table 2

Forecast for expenditure: plants which generate heat from solid biomass

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 2019421.006.00
31st October 2019427.006.00
31st January 2020433.006.00
30th April 2020439.006.00
31st July 2020445.006.00
31st October 2020451.006.00
Any date after 30th January 2021457.006.00

(4) For Table 3 (forecast for expenditure: CHP systems) substitute—

Table 3

Forecast for expenditure: CHP systems

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 201977.501.72
31st October 201979.221.72
31st January 202080.941.72
30th April 202082.661.72
31st July 202084.381.72
31st October 202086.101.72
Any date after 30th January 202187.821.72

(5) For Table 4 (forecast for expenditure: ground source heat pumps and shared ground loop systems with an installation capacity of 100kWth or above) substitute—

Table 4

Forecast for expenditure: ground source heat pumps and shared ground loop systems with an installation capacity of 100kWth or above

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 201926.003.00
31st October 201929.003.00
31st January 202032.003.00
30th April 202035.003.00
31st July 202038.003.00
31st October 202041.003.00
Any date after 30th January 202144.003.00

(6) For Table 5 (forecast for expenditure: ground source heat pumps and shared ground loop systems with an installation capacity of below 100kWth and air source heat pumps) substitute—

Table 5

Forecast for expenditure: ground source heat pumps and shared ground loop systems with an installation capacity of below 100kWth and air source heat pumps

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 20199.220.64
31st October 20199.860.64
31st January 202010.530.66
30th April 202011.230.70
31st July 202011.940.71
31st October 202012.650.71
Any date after 30th January 202113.370.72

(7) For Table 6 (forecast for expenditure: plants which use solar collectors) substitute—

Table 6

Forecast for expenditure: plants which use solar collectors

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 20191.000.50
31st October 20191.500.50
31st January 20202.000.50
30th April 20202.500.50
31st July 20203.000.50
31st October 20203.500.50
Any date after 30th January 20214.000.50

(8) For Table 7 (forecast for expenditure: plants which generate heat from biogas with a capacity below 600kWth) substitute—

Table 7

Forecast for expenditure: plants which generate heat from biogas with a capacity below 600kWth

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 201957.000.90
31st October 201957.900.90
31st January 202058.800.90
30th April 202059.700.90
31st July 202060.600.90
31st October 202061.500.90
Any date after 30th January 202162.400.90

(9) For Table 8 (forecast for expenditure: producers of biomethane for injection and plants which generate heat from biogas with a capacity of 600kWth and above) substitute—

Table 8

Forecast for expenditure: producers of biomethane for injection and plants which generate heat from biogas with a capacity of 600kWth and above

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 2019389.842.00
31st October 2019391.842.00
31st January 2020393.842.00
30th April 2020395.842.00
31st July 2020397.842.00
31st October 2020399.842.00
Any date after 30th January 2021401.842.00

(10) For Table 9 (forecast for expenditure: deep geothermal plants) substitute—

Table 9

Forecast for expenditure: deep geothermal plants

Assessment DateExpenditure threshold when calculating C for the purposes of regulation 60 (£million)Anticipated increase in expenditure since previous assessment date (£million)
31st July 20193.300.03
31st October 20193.330.03
31st January 20203.360.03
30th April 20203.380.02
31st July 20203.410.03
31st October 20203.430.02
Any date after 30th January 20213.460.03

Chris Skidmore

Minister of State

Department for Business, Energy and Industrial Strategy

11:00 a.m. on 26th June 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

This instrument amends the Domestic Renewable Heat Incentive Scheme Regulations 2014 (“the 2014 Regulations”) and the Renewable Heat Incentive Scheme Regulations 2018 (“the 2018 Regulations”). The 2014 Regulations established the domestic renewable heat incentive scheme, under which owners of plants which generate heat from specified renewable sources in domestic properties may receive payments at prescribed rates (“tariffs”). The 2018 Regulations revoked and replaced the Renewable Heat Incentive Scheme Regulations 2011, which established the non-domestic renewable heat incentive scheme, under which owners of non-domestic plants which generate heat from specified renewable sources, and producers of biomethane for injection, receive payments for heat used for eligible purposes.

Amendments to the 2014 Regulations

Part 2 of these Regulations adjusts the expenditure thresholds in the tables in Schedule 6 in order to align the triggers to the latest deployment assumptions. Deployment assumptions means the level of applicants anticipated to apply to the scheme for each technology or group of technologies.

Amendments to the 2018 Regulations

Part 3 of these Regulations amends the 2018 Regulations.

Regulation 5 amends regulation 35 in order to extend the availability of tariff guarantees to 31 January 2021 where an application is made on or after 17 July 2019.

Regulation 6 amends the expenditure thresholds in Schedule 7 in order to align the triggers to the latest deployment assumptions.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector will be published during summer 2019, and will be available from the Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London, SW1H 0ET.

The Explanatory Memorandum will be published alongside the instrument on www.legislation.gov.uk.

(1)

2008 c.32. Section 100 is amended by section 51 of the Infrastructure Act 2015 (c.7) and S.I. 2011/2195. Section 51 also amended section 105 of the Energy Act 2008 (Parliamentary control of subordinate legislation) and inserted subsections (3A) to (3I) concerning provisions which require the affirmative resolution procedure. By virtue of section 105(3A) to (3I), these Regulations do not attract the affirmative procedure.

(3)

S.I. 2018/611 as amended by S.I. 2018/635.

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