The Green Gas Support Scheme (Amendment) Regulations 2026
Extended the Green Gas Support Scheme commissioning deadlines and aligned reporting periods with the standard scheme year.
These Regulations amend the Green Gas Support Scheme (GGSS) to extend the deadline for commissioning biomethane production equipment and modify the duration of financial support.
They authorize the Gas and Electricity Markets Authority to extend tariff guarantee deadlines to 31 March 2030 for eligible applicants and clarify rules regarding heat pump exemptions and sustainability audit reporting.
The instrument applies to producers of biomethane via anaerobic digestion in England, Wales, and Scotland, transitioning the scheme's administrative and reconciliation cycles from 'payment years' to 'scheme years' starting in April 2027.
Arguments For
The Regulations state that the commissioning deadline for biomethane equipment is extended to 31 March 2030 for certain applicants, providing additional time for project completion.
The Explanatory Note indicates that the instrument corrects a drafting error in regulation 8A of the 2021 Regulations regarding heat pump exemptions.
The document specifies that aligning reporting periods with 'scheme years' instead of 'payment years' creates consistency across the regulatory framework.
The instrument allows participants who applied after 10 December 2025 to request a later injection commencement date, which the document frames as a flexibility for tariff guarantees.
Arguments Against
Legal scholars might note that the Regulations impose a hard stop on support payments on 31 March 2043 for those starting after 2028, potentially shortening the 15-year payment term for late entrants.
Industry participants may find the dual-track commencement dates (some regulations in October 2026, others in April 2027) create administrative complexity during the transition.
Affected parties might question the Authority's discretion under Regulation 3(b) to impose additional conditions when re-issuing tariff guarantee notices.
Proponents of anaerobic digestion might argue that while the extension is provided, the lack of a full impact assessment leaves the economic effect on smaller producers unexamined.
Citation, commencement, extent and interpretation
- -(1) These Regulations may be cited as the Green Gas Support Scheme (Amendment) Regulations 2026.
- (2) These Regulations come into force on 16th October 2026, subject as follows.
- (3) Regulations 7 and 10 come into force on 1st April 2027.
- (4) These Regulations extend to England and Wales and Scotland.
- (5) In these Regulations, '2021 Regulations' means the Green Gas Support Scheme Regulations 2021.
This section establishes the official title of the instrument and sets two different dates for when its provisions take effect.
Most changes begin on 16 October 2026, while specific changes to reporting and reconciliation begin on 1 April 2027.
It also confirms the regulations apply across Great Britain and identifies the 2021 Regulations as the primary legislation being amended.
Amendment to the 2021 Regulations
2 The 2021 Regulations are amended as follows.
This section serves as a formal instruction to modify the Green Gas Support Scheme Regulations 2021.
It introduces the specific amendments detailed in the subsequent sections of the document.
Amendment to regulation 4 (application for tariff guarantee and budget allocation)
3 In regulation 4-
- (a) in paragraph (2)-
- (i) in sub-paragraph (a), for '2028' substitute '2030';
- (ii) omit the 'or' after sub-paragraph (a);
- (iii) after sub-paragraph (b)(v), insert
- (c) after 31st March 2028.';
- (b) after paragraph (6), insert-
'(6A) The Authority may, if requested by an applicant, re-issue a notice issued under paragraph (6) for an application made on or after 10th December 2025, that substitutes a later date, that is no later than 31st March 2030, as the date by which, for the purposes of the tariff guarantee, the injection of biomethane must commence.
(6B) If the Authority re-issues a notice under paragraph (6A), it may amend the conditions that apply in relation to the tariff guarantee, or impose additional conditions, which the Authority considers necessary in relation to the tariff guarantee.';
- (c) in paragraph (7)-
- (i) in sub-paragraph (a)(ii), for 'paragraph (6)(b), (d) or (e)' substitute 'paragraphs (6) (b), (d), (e), (6A), or (6B)';
- (ii) for sub-paragraph (b)(i), substitute-
- '(i) 183 or more days after the date given in accordance with-
- (aa) paragraph (4)(a), or
- (bb) paragraph (6A), where a notice has been re-issued under that paragraph,';
- (iii) omit the 'or' after sub-paragraph (b)(i);
- (iv) for sub-paragraph (b)(ii), substitute-
- '(ii) where the application for the tariff guarantee was made before 4th June 2024, after 30th November 2025,
- (iii) where the application for the tariff guarantee was made on or after 4th June 2024 and before 10th December 2025, after 31st March 2028,
- (iv) where the application for the tariff guarantee was made on or after 10th December 2025 and before 16th October 2026-
- (aa) after 31st March 2028, or
- (bb) if the notice is re-issued following a request made under paragraph (6A), after 31st March 2030, or
- (v) for all other applications, after 31st March 2030,';
- (d) in paragraph (17), in the definition of 'relevant financial year', for 'and 2029/2030' substitute ', 2029/2030, 2030/2031, 2031/2032, 2032/2033, 2033/2034 and 2034/2035.'
This section extends the eligibility period for the Green Gas Support Scheme by moving the deadline for commissioning equipment to 31 March 2030.
It empowers the Authority to re-issue tariff guarantee notices with later dates for certain applicants and to attach new conditions to these guarantees.
The section also updates the definition of 'relevant financial year' to include periods up to 2034/2035.
Amendment to regulation 6 (determination of application for registration and the central register)
4 In regulation 6(6)(d), for '2028' substitute '2030'.
This section updates the registration requirements to align with the new 2030 deadline. It ensures that the central register reflects the extended period during which biomethane producers can be registered for the scheme.
Amendment to regulation 7 (treatment of grants from public funds)
5 In regulation 7(3)(b), for '2028' substitute '2030'.
This amendment adjusts the rules regarding public grants to match the scheme's extension to 2030.
It governs how financial support from other public sources interacts with GGSS payments during the extended timeframe.
Amendment to regulation 8A (registration of eligible heat pumps)
6 In regulation 8A(5)-
- (a) at the beginning, for 'A' substitute 'An exemption from a';
- (b) after '27(2)(d), and', insert 'a deduction for'.
This section corrects the language regarding heat pump registrations to clarify that participants receive an exemption from certain payment deductions.
It ensures that the deduction process for electricity supplied to heat pumps is legally precise.
Amendment to regulation 10 (ongoing participant obligations: general)
7 In regulation 10(1)(k)-
- (a) for 'payment year (within the meaning of that regulation)' substitute 'scheme year';
- (b) in sub-paragraph (i), for 'payment', in both places it occurs, substitute 'scheme'.
This section changes the reporting period for participants from a 'payment year' to a 'scheme year'.
It applies to the general obligations of scheme participants, standardizing the timeframe for their annual reports.
Amendment to regulation 13 (ongoing participant obligations: sustainability audit reports)
8 In regulation 13-
- (a) in paragraph (4)-
- (i) for 'paragraph (5)' substitute 'paragraphs (5) to (7)';
- (ii) for 'each anniversary of' substitute 'the end of each scheme year from';
- (b) in paragraph (5)-
- (i) at the beginning, for 'The' substitute 'Subject to paragraphs (6) and (7), the';
- (ii) for the words from 'the', in the second place it occurs, to the end, substitute 'that scheme year.';
- (c) after paragraph (5), insert-
'(6) If a participant has not submitted a report under this regulation, the Authority may require the participant to submit a report that must consider and report on each consignment of biomethane produced on or after the date on which that participant was first registered as a producer of that biomethane and before 1st April 2026.
(7) The Authority may require a participant to submit a report under this regulation within three months after the tariff end date which must consider and report on each consignment of biomethane produced during the period starting on 1st April of the preceding scheme year and ending on the tariff end date.'
This section updates the requirements for sustainability audit reports to align with scheme years.
It also grants the Authority power to demand retrospective reports for biomethane produced before April 2026 and final reports within three months of a participant's tariff end date.
Amendment to regulation 21 (calculation and payment of periodic support payments to participants)
9 In regulation 21-
- (a) for paragraph (1), substitute-
'(1) Subject to paragraph (1A), periodic support payments are payable for 15 years from the tariff start date.
(1A) Where the tariff start date is after 31st March 2028, periodic support payments are not payable in respect of a period after 31st March 2043.';
- (b) in paragraph (2), at the beginning, for 'Paragraph (1) is' substitute 'Paragraphs (1) and (1A) are'.
This section defines the duration of financial support, maintaining a standard 15-year payment term.
However, it introduces a cutoff date of 31 March 2043, after which no further payments will be made, regardless of whether a participant has completed their 15-year term.
Amendment to regulation 28 (reconciliation payments for biomethane)
10 In regulation 28-
- (a) in paragraphs (1), (2) and (3), for 'payment year', in each place those words occur, substitute 'scheme year';
- (b) in paragraph (5)-
- (i) after the definition of 'biogas yield', for ', and' substitute '.';
- (ii) omit the definition of 'payment year'.
This section switches the basis for calculating reconciliation payments from 'payment years' to 'scheme years'.
It removes the now-obsolete definition of 'payment year' from the regulations governing payment adjustments.
Transitional and saving provision
- -(1) Where a payment year begins before 1st April 2027, regulations 10(1)(k) and 28 of the 2021 Regulations continue to have effect for that payment year as if they had not been amended by these Regulations.
- (2) Where-
- (a) regulation 28 of the 2021 Regulations applies in relation to a payment year to which paragraph (1) applies, and
- (b) regulation 28 as amended by these Regulations applies in relation to a scheme year beginning on 1st April 2027 ('2027 scheme year'),
the sum calculated in accordance with regulation 28(2)(a) for the 2027 scheme year must be reduced by the sum of the periodic support payments calculated in respect of the period covered by both the payment year and the 2027 scheme year.
- (3) For the purposes of regulation 10(1)(k) of the 2021 Regulations, as it applies in relation to a payment year beginning before 1st April 2027, the Authority may require a participant to submit an annual report in accordance with regulation 13 of the 2021 Regulations as it had effect immediately before regulation 8 of these Regulations came into force.
- (4) For the purposes of this regulation- 'payment year' has the meaning given in regulation 28(5) of the 2021 Regulations; 'scheme year' has the meaning given in regulation 2 of the 2021 Regulations.
This section provides transitional rules to manage the shift from 'payment years' to 'scheme years.' It ensures that any reporting or payment cycles started before April 2027 are completed under the old rules and prevents double-counting of payments during the crossover period in 2027.
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