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Changes to Renewable Heat Incentive tariffs from 1 January 2017

Posted by Trish O'Flynn on 14 December 2016 at 10:30 am

On 30 November the government (BEIS) announced reductions to the Renewable Heat Incentive tariffs for certain new domestic and non-domestic installations with applications approved on or after 1 January 2017.

The percentage reductions in domestic and non-domestic RHI tariffs are as follows:

  • 10% for domestic biomass   
  • 5% for small commercial biomass
  • 25% for small, medium and large biogas, and
  • 10% for biomethane injection. 

The reductions apply only to applications for these installations that are approved on or after 1 January 2017. Existing scheme members are not affected.

Which Domestic RHI tariff is changing?

The current and January 2017 levels of the domestic RHI tariff for biomass are set out in the table below. The tariffs for air source heat pumps, ground source heat pumps and solar thermal are not changing this time.


Existing tariff (p/kWh)

Percentage Reduction

New tariff from

1 January 2017 (p/kWh)

Biomass pellet boilers
and stoves (with back boiler)




How are Non-domestic RHI tariffs changing?

The current and January 2017 levels of non-domestic RHI tariff that are changing are set out in the table below.


Existing tariff (p/kWh)

Percentage Reduction

New tariff from

 1 January 2017 (p/kWh)

Small commercial biomass

Tier 1: 3.10
Tier 2: 0.82


Tier 1: 2.95
Tier 2: 0.78

Small biogas




Medium biogas




Large biogas




Biomethane injection

Tier 1: 4.32
Tier 2: 2.54
Tier 3: 1.96


Tier 1: 3.89
Tier 2: 2.29
Tier 3: 1.76

Some tariffs are not changing this time - namely those for medium commercial biomass, large commercial biomass, solid biomass CHP systems, air source heat pumps, water/ground source heat pumps, all solar collectors and deep geothermal.

What do I need to do to get the higher tariff?

If you are thinking about applying for RHI for your installation, to be eligible for the current (higher) tariff, all application paperwork must be fully completed and properly submitted before 1 January 2017.

Will tariffs change again?

Any future changes to tariff levels from 1 April 2017 will be announced by BEIS by 1 March 2017.

Sources :
Ofgem (Domestic Biomass RHI tariff)
Ofgem (Non Domestic Biomass RHI tariff)

Also see:

Introduction to the Renewable Heat Incentive

More information about Energy Saving and Renewable Energy on YouGen.

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About the author: Trish is a web content writer with the National Energy Foundation.

If you have a question about anything in the above blog, please ask it in the comments section below.

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