The Non Domestic RHI

The Non Domestic Renewable Heat Incentive (RHI) compensates for the additional cost of installing ground source heat pumps, compared to fossil fuel systems, in commercial and ‘district’ heating applications, notably Shared Ground Loop Arrays with ground source heat pumps.

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 Kensa's innovative ambient-temperature Shared Ground Loop Arrays are 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;
  • The Non Domestic RHI supports both new build and retrofit applications;
  • A Non Domestic RHI eligible installation might be a large-scale industrial heating system or as few as two  domestic dwellings connected by a Shared Ground Loop Array;
  • Uniquely, ground source heat pumps and Shared Ground Loop Arrays receive the Non Domestic RHI based on deemed heat consumption - all other eligible applications are metered.

 

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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 Shared Ground Loop Array.

 

District heating non domestic rhi

This scenario is eligible for the Non Domestic Renewable Heat Incentive, and will receive RHI payments based on the deemed consumption taken from the EPCs.

See more Non Domestic RHI options

In this example a single commercial property is connected to its own ground array.

This scenario is eligible for the Non Domestic Renewable Heat Incentive, and will receive RHI payments based on metered heat readings.

Non Domestic RHI payments

Non Domestic RHI Tariffs

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

Current tariff levels: 9.36p/kWh on the first 1314 hours of eligible energy produced followed by 2.79p/kWh on any additional heat produced (over a 1 year period).
  • Payments accrue from the date of accreditation of the installation.
  • The date is confirmed in the accreditation confirmation letter emailed to successful applicants.
  • Payments for Shared Ground Loop Array schemes are based on the deemed heat consumption taken from the property’s Energy Performance Certificate (EPC). Payments for all other Non Domestic RHI eligible schemes are metered.
  • The list of currently available tariffs can be found here.

Fixed tariffs

Once in the scheme, the level of support an installation will receive is fixed and adjusted annually with inflation.

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.

However, as with feed in tariffs, over time we expect the levels of support to decrease to new entrants as the costs of the equipment and installation reduce through economies of scale - so the advice is act sooner to secure the best tariff for twenty-years.

What are the rules?

  • Ground source heat pumps with Shared Ground Loop Arrays receive RHI payments based on the deemed heat consumption taken from the property’s Energy Performance Certificate (EPC) - all other Non Domestic RHI 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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