New build social housing properties featuring renewable heat networks are eligible for the Non Domestic Renewable Heat Incentive (RHI).
The Department for Business, Energy and Industrial Strategy (BEIS) has confirmed that Kensa’s micro district ground source heat network design – where an individual ground source heat pump is installed inside each property and linked to a communal ground array – qualifies as a heat network system (also known as district heating system); as few as two dwellings with their own ground source heat pump linked to a communal ground array qualify.
- Includes support for residential heat network systems (district heating)
- Recently uplifted tariffs for ground source heat pumps
- Payments made over 20 years
- Includes support for new build
- HCA funded projects eligible
- More attractive long term rate of return than Domestic RHI scheme
Importantly, receiving an HCA grant for the building does not rule out also receiving RHI, providing:
- the correct accounting separation is in place and;
- the original HCA grant offer did not highlight any intent to use renewables.
This means that social landlords may use a system eligible for the Non Domestic RHI, such as a common ground array serving individual household ground sourced heat pumps, and offers a real opportunity to benefit from a 20 year income through the delivery of renewable heat, helping to offset the additional costs over a conventional heating installation.
Within its guidance on the topic, Ofgem clearly states that RHI support will only be available for an eligible installation if no grant from public funds has been paid or will be paid in respect of any of the costs of purchasing or installing the eligible installation. This means it is vital to transparently separate the renewable heat installation costs from the house building costs towards which HCA grant is accounted.Read more
With the support of our contractors and Kensa Heat Pumps, Trent & Dove has achieved an outcome that many housing associations dream of; halved tenant energy bills, halved CO2 emissions in our stock, improved tenant health and well-being, and £2.3m of income through the RHI to off-set our £1.8m investment – and all of this in just 3 months.
Steve Grocock, Director of Property Services, Trent & Dove Housing