Developer Benefits

Real incentives for real estate

Enjoy a 6-13% IRR on new build developments with the Non-Domestic RHI


Thanks to Kensa’s innovative micro ground source heat network design and the Shoebox heat pump, developers of houses and flats can now benefit from 20 years of quarterly payments through the Non Domestic Renewable Heat Incentive (RHI).

Working with Kensa’s Non-Domestic RHI eligible micro heat network scheme (also known as district heating), a phased installation programme can be managed in line with the project schedule.

With individual heat pumps at each dwelling the properties enjoy independent heating & hot water and reduced bills, whilst the need for a plantroom is removed, freeing up more real estate to be developed.

A win-win for developers and prospective buyers.

Heat network schemes & the RHI

Whilst it is not widely appreciated that significant subsidy support is available for housing schemes, ground source heat pumps connected to heat networks are eligible for the Non-Domestic Renewable Heat Incentive (RHI), a Government backed scheme which provides an index-linked 20 year income stream.

Two or more properties on a shared ground array qualify as a heat network scheme.

Better still, heat network systems reduce installation costs.

As a result the developer can receive an RII of 6-13% on the installation.

The heat network approach is suitable for clusters of properties, including multiple occupancy dwellings.

With Kensa’s Shoebox ground source heat pump range, flats and apartments are now also able to benefit from this efficient technology which generates guaranteed heat all year round, as well as a guaranteed income every quarter for 20 years through the Non Domestic RHI.

Ground source heat pumps in housing developments

Exceptional standards

  • Suitable for new build and retrofit
  • Part L compliant
  • Exceeds Level 3 of Code for Sustainable Homes
  • Meets Decent Homes standards
  • Permitted Development Rights

Sustainable development

  • Highly marketable ‘carbon appeal’
  • Replaces need for gas infrastructure
  • Affordable and flexible heat network scheme
  • Independent appliance inside each dwelling –Shoebox range

High rewards

Green banner

A ground source heat pump’s (GSHP’s) efficiency results in exceptionally low running costs.

In typical housing developments each unit of electricity consumed by the heat pump delivers around four units of heat.

1kW electricity = 4kW heat

Assuming electricity costs around 16p per kilowatt hour, the kilowatt hour price is effectively quartered which means the running costs (at 4p kWh) will be lower than those delivered by a mains gas boiler; maintenance cost will be negligible and carbon emissions will also be lower.

For these reasons, the specification of GSHP’s allow developments to be marketed under an ultra-green, energy efficiency banner with demonstrably low running costs, an attractive opportunity given the current focus on energy costs.

Carbon Compliance

Developments featuring Kensa ground source heat pumps benefit from reduced CO2 emissions and improved carbon compliance compared to traditional fuels.

Equally, in gas connected areas ground source heat pumps provide a carbon compliance solution without the need for supplementary carbon saving measures, such as solar PV.

Building Regulations Part L are becoming increasingly stringent in the use of energy and CO2 emissions. By replacing a conventional fossil fuel based heating system with a ground source heat pump, higher levels of building efficiency and CO2 saving can be achieved.

CO2 emissions from new buildings are measured in SAP.  While electricity is considered a relatively carbon intensive fuel, the efficiency factor of a ground source heat pump reduces the emissions from space and water heating by up to two-thirds.

emissions graph

Homes & Communities Agency funded projects

OFGEM has confirmed that installations at properties which will also benefit from a HCA grant are eligible for RHI funding.

This is provided the initial HCA bid did not specify that a renewable heat technology would be installed and the housing association maintains separation between accounts receiving HCA funds and accounts making payments for the renewable technology.

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