Non Domestic RHI
This scheme support heat pump installations for non-domestic properties and multiple domestic properties. Tariffs are lower than in the domestic scheme, but they are paid over 20 years and they are un-capped.
Installations for two or more or more dwellings can be eligible for non-domestic RHI provided they are separate legal entities. In case there is more than one dwelling in the same estate, the dwellings are considered separate if they are treated as separate from a council tax banding point of view.
If two or more dwellings are connected to one heat pump system, payments are based on meter reading from a heat meter.
If two or more dwellings share the same ground loop and have separate heat pumps in each dwelling, the heat production is deemed based on the estimate heat requirement in the EPC.
Tariff payments over 20 years in many cases equates to 2-3 times the initial cost for the heat pump system.
Read more here.
Which renewable heat technologies are eligible for RHI payments?
The RHI supports the following technologies:
- Ground and water source heat pumps
- Air-to-water heat pumps
- Biomass-only boilers and biomass pellet stoves with back boilers
- Flat plate and evacuated tube solar thermal panels.
Current tariffs:
- Ground and Water Source (up to 100kWth):
- Tier 1 (first 1,314 operating hours each year): 9.68p/kWh
- Tier 2 (subsequent operation hours each year): 2.89p/kWh
- Ground and Water Source (over 100kWth):
- Tier 1 (first 1,314 operating hours each year): 5.58p/kWh
- Tier 2 (subsequent operation hours each year): 1.66p/kWh
- Air Source: 2.79 p/kWh
The government has launched a new domestic Renewable Heat Incentive payment calculator. This calculator will help you to calculate what you may be paid through the scheme, based on the type of renewable heating system to be installed. You can visit the calculator by clicking on the link below.
You can visit the calculator by clicking on the link below.
Renewable Heat Incentive CalcultorHow do the RHI payments work?
Full details of the how the payments work can be found on the Ofgem Website:
- Homes on the RHI domestic scheme will receive a quarterly tariff payment for seven years, for every kilowatt hour (kWh) of renewable heat they produce.
- All paid quarterly for seven years.
- Any public grants previously received, including the Renewable Heat Premium Payment (RHPP), will be deducted to avoid people receiving a double subsidy.
- Energy regulator Ofgem is responsible for dealing with applications and payments.
- Tariffs will change annually in line with the Retail Price Index (RPI).
How much these rates represent in real terms will vary between householders and heating technologies. In order to know how much you could potentially earn, you will need to know how much heat your system will generate in a year, in kWh:
- for heat pumps the renewable heat generated will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency
To help improve the performance of renewable heating systems, there will be an extra incentive for applicants who install metering and monitoring service packages, of £230 per year for heat pumps.