How will the DRHI Closure affect installers?

The Domestic Renewable Heat Incentive (DRHI) scheme is closing to new applications at midnight on 31 March 2022.

To gain further insight into the thoughts and understanding of installers regarding the closure of the scheme, HIES conducted an industry survey to air source heat pump installers to gather some responses. Mark Woods, HIES Operations Director, takes a look at the findings:

Communications and understanding

Regarding the understanding of the closure of the DRHI, all respondents were aware of the key dates of the closure of the Scheme.

  • 100% of respondents knew that the DRHI was closing on 31 March 2022
  • 100% of respondents knew that applications for DRHI must be submitted by the customer by 31 March 2022
  • 100% of respondents knew that systems must be commissioned before 31 March 2022

Financial impact

The survey also asked respondents about the level of financial impact the closure of the DRHI will have on their business.

  • 85.3% of respondents answered that the level of financial impact will be negative
  • 5.9% of respondents answered that the level of financial impact will be positive
  • 8.8% of respondents answered that they will see no financial impact at all

Obtaining heat pumps

The survey also asked respondents about the difficulty of currently obtaining heat pumps.

  • 82.4% of respondents answered that they are experiencing difficulties obtaining heat pumps
  • 17.6% of respondents answered that they are not experiencing difficulties obtaining heat pumps
The results have shown that although air source heat pump installers are aware of the impending closure of the scheme, there are some concerns. It appears a large proportion of installers will see adverse effects from the closure of the scheme. The survey has identified that many installers will be negatively affected financially when the scheme closes paired with installers experiencing notable difficulties obtaining heat pumps.

For further information on the closure of the DRHI, Ofgem has published extensive guidance. This includes specific guidance on the scheme’s closure which explains what prospective applicants must do, and the information that they must submit, to make a successful application for accreditation to the scheme before it closes to new applications on 31st March.

The DRHI guidance is located here.