The Domestic Renewable Heat Incentive (DRHI) has closed to new applicants, Ofgem announced on 7 April 2022. The scheme, launched in 2014, paid households for renewable heat generation from four eligible technologies: air source and ground source heat pumps, biomass and solar thermal1.
Ofgem reported that the scheme supported 110,281 renewable heating systems across Great Britain and paid £819.3m to members over eight years. It estimated 7.04TWh of clean heat had been generated since launch, of which 1.20TWh came in 2021-22 alone. The scheme reached 50,000 accredited installations during 2016 and passed 100,000 accredited installations in February 20221.
"Now that the DRHI scheme has closed to new applicants we reflect on what this innovative scheme has achieved"
Existing members are unaffected by the closure. Ofgem said members will continue to receive support payments for up to seven years if they continue to follow the scheme rules, and that it will keep monitoring compliance over that period1. The ongoing obligations for domestic RHI participants therefore still apply to those already accredited, and the Renewable Heat Incentive statistics remain the record of what the closed scheme delivered.
Ofgem also administers two successor schemes. The Green Gas Support Scheme, intended to increase the proportion of green gas in the grid, launched in November 2021. The Boiler Upgrade Scheme provides grants towards low carbon heating systems such as heat pumps, and in limited circumstances biomass systems, for property owners in England and Wales1.
| Date | Step |
|---|---|
| 1 April 2022 | Systems commissioned on or after this date eligible for Boiler Upgrade Scheme support |
| 11 April 2022 | Installers able to open a Boiler Upgrade Scheme account |
| 23 May 2022 | Boiler Upgrade Scheme open for grant applications |
Why it matters for households
For a household that did not accredit an installation before the closure, the DRHI payment stream is no longer available. The scheme paid a tariff for heat generated over seven years, so its closure removes a long-running income stream tied to a home's heating system rather than to its electricity export. Households that did accredit in time keep that income, but only for as long as they meet the scheme rules1.
The practical effect is that the support available for a renewable heating installation now depends on where the property is and which scheme applies. The Boiler Upgrade Scheme covers England and Wales only, and Ofgem describes its grants as aimed at low carbon heating systems such as heat pumps, with biomass in limited circumstances1. The Green Gas Support Scheme works on the gas supply rather than on individual homes1.
For energy independence at home, the change shifts the emphasis from an ongoing payment for heat produced to a one-off grant towards the cost of the equipment. Ofgem's figures show the scale of what the closed scheme built: more than 110,000 systems and 7.04TWh of clean heat1. What replaces that for a given home depends on eligibility for the newer schemes, and no further detail on take-up of the Boiler Upgrade Scheme has been reported here.
What happens next
The Boiler Upgrade Scheme opened to installer accounts on 11 April 2022 and to grant applications on 23 May 2022, with support for systems commissioned on or after 1 April 20221. Ofgem said it will continue to work with government and industry on low carbon heat, and will monitor DRHI compliance for members still receiving payments1.