Heat Incentive Scheme (Amendment) Regulations 2016 (SI
2106/718) came into force on 1 August 2016. The
Explanatory Memorandum to the regulations says that they have
"To close a loophole that has come to light which represents
a financial and value for money risk to the scheme (…) The further
amendment being introduced here is part of a planned programme of
scheme improvements to drive uptake and deliver value for
Under the revised scheme, some biomass-CHP (Combined Heat &
Power) plant will be prevented from receiving the (higher)
biomass-CHP tariff for all their heat outputunlessa power
efficiency threshold of 20% is met.
The 2016 regulations were subject to the negative resolution
procedure so were not debated or voted on in Parliament. Any ARCH
member considering installing biomass-CHP plant should be aware of
the new Regulations.
In the Spending Review in November 2015, the government
confirmed funding for the scheme to 2020. They published a
consultation on its review of the Renewable Heat Incentive scheme,
aimed at maintaining affordability and increasing the focus on
technologies that are likely to be strategically important. They
also proposed imposing a spending cap on the scheme.
The House of Commons Library has also published a briefing paper on the Renewable Heat
Incentive Scheme which ARCH members may find useful.