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Non-Domestic Renewable Heat Incentive

biomass boilerThe scheme commenced in November 2011 and is open to a variety of organisations including corporate businesses, charities, local authorities and not for profit organisations. It also available to residential property owners where two or more homes have separate council tax assessments, or a home annexed to a business such as a farm, are heated from a single eligible renewable energy source via a district heating system. With a multiplicity of applications occupiers and operators heating shops, office, industrial premises, care homes, farms, hotels, leisure centres, bed and breakfast accommodation, etc. can all benefit from the non-domestic RHI.

The owner of the heating system will receive payments for 20 years from the date the system is registered with Ofgem. The payments are based on a technology specific tariff and the amount of eligible heat required by the consumer to heat the subject premises or process. Tariffs are subject to “degression”, a quarterly adjusted to reflect the number of installations registered in the previous quarter against pre-set targets. Once a qualifying installation is registered the tariff is fixed except for being indexed linked to the RPI.

The table below details the Eligible technologies and relevant tariff level: –

Renewable Technology Plant Capacity Output Tier Non-domestic RHI Tariff
Application Period (p/kWh)
from 1/07/2017
Non-domestic RHI Tariff
Application Period (p/kWh)
From 20/09/2017
Solid wood biomass Small commercial biomass >200kWth

1
2

2.71
0.71

2.96
2.08

Medium commercial biomass
200kWth – 1MWth

1
2

4.79
2.08

2.96
2.08

Large commercial biomass 1MWth

1
2

2.08
2.08

2.96
2.08

Ground / Water Source Heat Pumps All capacities

1
2

9.09
2.71

9.09
2.71

Air Source Heat Pumps All capacities

all

2.61

2.61

Solar Thermal Collectors >200kWth

all

10.44

10.44

(Tier 1 Tariffs are paid on the initial eligible heat generated by the installation if running at full capacity for 1,314 hours (15% of the year); Tier 2 on the remainder of the eligible heat. From 20 September the threshold for biomass installations is to be increased to 35%*)

* Subject to approval by Parliament

There are additional provisions specific to each technology regarding eligibility and set procedures and rules that need to be followed to ensure an RHI application is successful. Fervo Renewable Energy can provide guidance on every step of the process of installing a renewable energy system to ensure your installation qualifies for the RHI.

To find out more contact Fervo Renewable Energy for an informal chat or make an enquiry.