Non-Domestic Renewable heat incentive
What Is The Non-Domestic RHI?
The Non-Domestic Renewable Heat Incentive ("Non-Domestic RHI") is similar to the Domestic Renewable Heat Incentive however it is aimed at businesses, the public sector and non-profit organisations, as well as buildings where multiple residential premises are heated by a common heat pump system. The Non-Domestic RHI is a Government programme which provides financial incentives over a 20 year period for the use of renewable heating products, such as ground source heat pumps and air source heat pumps.
Payments are based on the metered amount of heat produced by the heat pump, and are index-linked, meaning payments should increase year on year.
How Is The Non-Domestic RHI Worked Out?
Non-DOMESTIC RHI HEAT PUMP TARIFFS
The Non-Domestic RHI is a tariff based system, similar to the Feed-in Tariff for solar panels. The table below shows the current Non-Domestic RHI tariffs for ground source heat pumps and air source heat pumps. These tariffs represent the amount you receive for each unit of heat output generated by your heat pump.
Non-domestic RHI Payments table
|Technology||RHI Tariff [p/kWhth]|
|Ground Source Heat Pump||Tier 1 - 9.36|
|Tier 2 - 2.79|
|Air Source Heat Pump||2.69|
Tariffs that apply for installations with an accreditation date on or after 1st January 2019
The tier 1 tariff is applied to the ‘initial heat’. ‘Initial heat’ is the amount of heat, in kWh, that would be generated by the heat pump installation if running at capacity for 15% of the year (1,314 hours).
The tier 2 payment is paid on the rest of the output for the year.
Total space heating and hot water requirement - 50,000kWh per annum
Ground source heat pump system capacity - 30kW
Tier 1 kWh = 30 x 1,314 = 39,420kWh @ 9.36p/kWh = £3,690 per annum
Tier 2 kWh = 50,000 - 39,420 = 10,580kWh @ 2.79p/kWh = £295 per annum
TOTAL ANNUAL NON-DOMESTIC RHI PAYMENT = £3,985
Non-Domestic vs Domestic RHI
NON-DOMESTIC RENEWABLE HEAT INCENTIVE
If the renewable heating system is to be heating a commercial, public or industrial premises, or a heat pump system is delivering heat to multiple residential premises, then you would need to apply for the Non-Domestic RHI. This can include the likes of schools, hospitals, churches, large or small businesses, as well as multi-residential buildings.
DOMESTIC RENEWABLE HEAT INCENTIVE
Generally speaking, the Domestic RHI is applied where a single property, which can receive a domestic Energy Performance Certificate (EPC), is being heated by a renewable heating system. The EPC acts as proof to show that the property is assessed as a domestic dwelling, as well as provided the deemed heat requirement for the property on which the payments are based.