The purpose of the Non-Domestic Renewable Heat Incentive (RHI) is to compensate for the cost of installing ground source heat pumps in commercial applications, providing a long term rate of return and fast payback for business owners, developers and social housing providers.
What is the non-Domestic RHI?
Also referred to as the Commercial RHI, the Non-Domestic Renewable Heat Incentive (RHI) is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid commercial properties. Providing a unique opportunity for new build and retrofit installations, in addition to commercial applications the Non-Domestic Renewable Heat Incentive (RHI) can be used in domestic cases where district heating is utilised.
The Non-Domestic Renewable Heat Incentive (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; industrial; public; and not-for-profit;
- Domestic micro heat network schemes, also known as district heating schemes, qualify for the Non-Domestic RHI;
- A Non-Domestic installation might be a large-scale industrial heating system or a smaller community heating project;
- The Non-Domestic RHI may be used to support both new build and retro-fit applications.
How much can I get through the Non-Domestic RHI?
The financial support will be paid every quarter at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for twenty years, to the owner of the heating system.
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.
You are paid a certain amount per kilowatt hour (kWhth) and calculations are made according to whether your system is designated “simple” or “complex”.
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.
Am I Non Domestic RHI or Domestic RHI?
Where a ground source heat pump provides heat to a property which is used for business uses and pays business rates you should be able to receive the Non Domestic Renewable Heat Incentive (RHI), accessing 20 years of quarterly payments based on the metered heat usage.
However, if you do not pay business rates, or if your property holds a Domestic EPC, you will not be eligible for the Non Domestic RHI as your property fits the criteria for the Domestic RHI, which instead provides quarterly payments over 7 years.View Ofgem's Guide
How do I get the Non-Domestic RHI?
To apply for the Non-Domestic Renewable Heat Incentive (RHI) you need to complete an application form on the Non-Domestic Renewable Heat Incentive (RHI) 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 RHI installation.
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
What are the rules?
- A key aspect of the Non-Domestic Renewable Heat Incentive (RHI) is that systems must be metered.
- Systems less than or equal to 45kWth must be MCS accredited.
- Must extract naturally occurring energy.
- 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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