What is it?
The Non-Domestic Renewable Heat Incentive (RHI) is a government environmental programme that provides financial incentives to increase the uptake of renewable heat. Broadly speaking the Non-Domestic RHI makes regular payments for 20 years to scheme participants that generate and use renewable energy.
Traditionally, we’ve relied on fossil fuels for heating and hot water, but by changing to renewable sources (naturally replenished energy), the RHI scheme can help the UK reduce its carbon emissions.
Who is it for?
The Non-Domestic RHI is for industrial, commercial, public sector and not-for-profit organisations. These normally include, for example, businesses, hospitals, schools, care homes, sports arenas, hotels, holiday parks etc – and district heating schemes such as in the case of where one boiler serves multiple homes.
The technologies currently covered by the scheme are:
- solid biomass
- Combined Heat and Power (CHP) systems for solid biomass, waste, geothermal and biogas
- solid biomass contained in waste
- heat pumps (ground source, water source and air-to-water
- solar thermal
Key Eligibility Criteria
- the applicant must be the owner of the installation
- equipment installed and first commissioned on or after 15 July 2009
- air to water heat pumps, biogas installations with a capacity of more than 200kW and solid biomass CHP installations must be commissioned on or after 4 December 2013
- equipment new at the time of purchase the metering arrangements must be correct– the right type of meters calibrated and placed in correct locations.
Current Financial Returns via RHI
|Tariff Name||Eligible Size||Tariff|
|Small commercial biomass||Less than 200 kWth Tier 1
Less than 200 kWth Tier 2
|Medium commercial biomass||200 kWth and above & less than 1MWth Tier 1
200 kWth and above & less than 1MWth Tier 2
|Large commercial biomass||1MWth and above 2
Examples of Financial Returns
- For a residential charity client based in Herts, we had a single boiler installed that will heat the entire site. They’ll return a guaranteed profit of just under £1M – again that’s based on today’s RHI Rate but this rate will only increase with inflation.
- For a residential charity for adults with learning difficulties based in Gloucestershire, we also had a single boiler installed that will heat their entire site; they will see a guaranteed profit of just under £0.5M – again based on today’s RHI Rate which will increase with inflation.
- Avon & Somerset Police Constabulary HQ in Portishead have installed 4 Boilers to cover their entire site and will return an overall profit of around £3M.
- As an example of a smaller scale user still creating a significant income stream – a day Hospice near Stroud Trust in N Wales is having a smaller system installed – they only have a demand of £3.5K for heat currently but will still return a guaranteed clear profit of £152K.