Non-domestic Renewable Heat Incentive

Non-domestic Renewable Heat Incentive

Does your building generate heat using renewable technology? If your building has a renewable heating system such as an air or ground source heat pump, it may qualify to earn a tariff under the Non-domestic Renewable Heat Incentive (RHI).

The Non-domestic Renewable Heat Incentive is a government incentive scheme that aims to increase the percentage of heat generated using renewable heat technology throughout the UK.

The Non-domestic RHI is one of two Renewable Heat Incentive schemes. The other, the Domestic RHI, is open to residential homes with a domestic Energy Performance Certificate (EPC).

Read on to learn more about the Non-domestic Renewable Heat Incentive, the tariffs available to qualifying property owners and the heating technology that’s eligible for the Non-domestic RHI.

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What is the Non-domestic RHI?

The Non-domestic RHI is one of two schemes set up to provide users of renewable heating technology with a tariff to reduce the costs of installing heating technology.

The other scheme, the Domestic RHI, is aimed at homeowners. The Non-domestic RHI is designed for businesses, public sector organisations, non-profit groups and other organisations that purchase and use renewable heating systems.

Examples of businesses and organisations that usually qualify for the non-Domestic RHI include:

  • Schools and universities
  • Public sector organisations
  • Hospitals
  • Industrial facilities
  • Commercial offices

Since the Non-domestic RHI provides a tariff based on the total output of the heating system, it can be a significant financial benefit for businesses and organisations that switch from traditional heating systems to green, renewable heating.

Several different heating systems qualify for the RHI. The most common renewable heating systems that are eligible for payments under the scheme are listed below:

  • Ground, water and air source heat pumps
  • Solar thermal water heating systems
  • Biomass boilers and heating technology
  • Bio-methane and biogas technology
  • Micro-CHP (combined heat and power) systems
  • Deep geothermal heating systems

Unlike the Domestic RHI, in which payments are made over a period of seven years, the Non-domestic RHI payment scheme provides payments based on the total heat output of the renewable heating system over a period of 20 years.

Who can apply for the Non-domestic RHI?

The Non-domestic RHI is open to non-domestic groups such as companies and non-profit organisations that install renewable heating technology. You can apply for the Non-domestic RHI online at the Ofgem website.

In order to qualify for the Non-domestic RHI, your organisation’s renewable heating system must meet the eligibility criteria. This criteria differs depending on the type of renewable heating technology installed.

You can view the full eligibility criteria on the Ofgem website. Note that changes to the Non-domestic RHI regulations from July 2015 took effect in October and could have an impact on the eligibility of Biomass and Biogas systems.

Organisations that qualify for the scheme need to remain compliant over time to continue receiving payments. Participants are required to submit meter readings, fuel logs and other information to Ofgem.

Current tariff rates for the Non-domestic RHI

There are several different tariffs for heat generated under the RHI. These tariffs can be viewed on the Ofgem website. The tariffs are updated every quarter based on the total number of non-domestic renewable heating installations throughout the UK.

Learn more about green energy

Are you interested in switching to renewable heat and energy? Tariff schemes such as the Renewable Heat Incentive and Feed-in Tariff make installing and using green heat and energy technology far more affordable.

You can learn more about the Feed-in Tariff in our Guide to the Feed-in Tariff.

We specialise in green energy and heating systems for commercial properties. Our experienced team can provide the advice and assistance you need to switch from a fossil fuel-based energy and heating system to clean, renewable energy.

From solar to wind power, we can help you implement the ideal solution for your business or organisation. Contact us now to learn more about how much you can save by switching to renewable energy for your business.

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