The Non Domestic RHI

The purpose of the Non Domestic RHI is to compensate for the additional cost of installing ground source heat pumps, compared to fossil fuel systems, in commercial and district heating applications.

The Non Domestic Renewable Heat Incentive (RHI) provides a long term rate of return and fast payback for business owners, developers and social housing providers.

What is the Non Domestic RHI?

The Non Domestic RHI pays a guaranteed quarterly income for 20 years to offset the cost of commercial and district heating ground source heat pump installations.

It is a UK Government financial support scheme for exclusively for renewable heat technologies, targeted at, but not limited to, off gas grid buildings.

In addition to commercial applications the Non Domestic Renewable Heat Incentive (RHI) can be used in retrofit and new build domestic properties where district heating is utilised.

The Non Domestic RHI is the responsibility of the Department for Business, Energy & Industrial Strategy (BEIS) and is administered by Ofgem.

Who is the Non Domestic RHI for?

  • The Non Domestic RHI scheme covers England, Wales and Scotland;
  • Sectors eligible for the Non Domestic RHI include: commercial; social housing; house building; industry; public; and not-for-profit;
  • Domestic heat network schemes, also known as district heating schemes, qualify for the Non Domestic RHI;
  • A Non Domestic RHI eligible installation might be a large-scale industrial heating system or a smaller community heating project;
  • The Non Domestic RHI can be used to support both new build and retro-fit applications.
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Is the Non Domestic RHI right for me?

In this example multiple domestic properties with individual ground source heat pumps are linked to a district heating shared ground loop array.

 

District heating non domestic rhi

This scenario is eligible for the Non Domestic Renewable Heat Incentive.

See more Non Domestic RHI options

In this example a single domestic and commercial property with individual ground source heat pumps are linked to a district heating shared ground loop array.

District heating and commercial building non domestic rhi

 

This scenario is eligible for the Non Domestic Renewable Heat Incentive.

Non Domestic RHI payments

Non Domestic RHI Tariffs

Non Domestic RHI payments will be paid every quarter at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for twenty years.

Current tariff levels: 9.1p/kWh on the first 1314 hours of eligible energy produced followed by 2.7p/kWh on any additional heat produced
  • Payments begin to accrue from the date of accreditation of the installation.
  • The date is confirmed in the accreditation confirmation letter emailed to successful applicants.
  • Payments will be made based on the actual heat output of the system.
  • The list of currently available tariffs can be found here.
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Calculations

You are paid a certain amount per kilowatt hour (kWhth) and calculations are made according to whether your system is designated “simple” or “complex”.

Changes

Ofgem is responsible for publishing quarterly tariff tables showing the tariffs that will be applicable for each tariff period following BEIS’s quarterly degression announcement;

Once in the scheme, the level of support an installation will receive is fixed and adjusted annually with inflation. However, as with feed in tariffs, we expect the levels of support available for new entrants to the RHI scheme to decrease over time as the costs of the equipment and installation reduce through economies of scale.

How to register for the Non Domestic RHI

Account set-up

To apply for the Non Domestic RHI you need to complete an application form on the Non Domestic Renewable Heat Incentive Register, which has to be supported with documents and evidence.

The Ofgem Renewable Heat (RHI) Register is an online login portal which allows you to perform a range of administrative functions required for the RHI scheme, including applying for accreditation for an eligible Non Domestic RHI installation.

Non Domestic RHI Register

The RHI Register will allow participants to:

  • Create and maintain user accounts to gain secure access to the RHI Register;
  • Apply for accreditation for an RHI eligible installation;
  • Maintain details of accredited/registered installations;
  • Submit periodic information, including meter readings, fuel measurements and sustainability information;
  • Submit annual declarations; and
  • Access reports.
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What are the rules?

  • A key aspect of the Non Domestic RHI is that systems must be metered.
  • Systems less than or equal to 45kWth must be MCS accredited.
  • Must extract naturally occurring energy.
  • The heat pump must have a CoP of at least 2.9.
  • Reversible ground source heat pumps must only measure heating not cooling.
  • Capacity of ground source heat pumps to be specified based on design conditions.
  • Must not use energy located and extracted from 500m or more beneath the surface of solid earth.

Being able to access the Non Domestic RHI was a bonus as it has helped us cover the costs of the ground source heat pump installations.

Elaine Robinson, Business Owner

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