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The Government has recently announced a set of changes to the eligibility criteria for the Non-Domestic Renewable Heat Incentive that will come effect this Spring.

Currently the Government is spending about £4.5B over the current 5-year period with the aim of supporting low carbon heating technologies being put into homes and businesses to reduce the amount carbon dioxide emissions. To greatly simplify the complexity of the rules that apply, a property is eligible for the non-domestic RHI if:

  • It is either
  • a commercial business
  • or
  • A network of homes heated by the same heat source (a heat network)
  • And, the source of the heat is renewable (a ground source heat pump, air source heat pump, biomass boiler, or solar thermal system)
  • And the use of the heat is ‘eligible’ (ie central heating for the buildings, domestic hot water, or some commercial uses for ‘process heat’).

The changes that are coming into effect in the Spring will tighten up the rules in several aspects:

    Heat for drying wood fuel will no longer be eligible in normal circumstances (there are some exceptions). The Government does not consider this good value for money.
  • Heat for drying, cleaning or processing of waste will also become ineligible (also with some exceptions for drying crops or animal bedding).
  • Probably the most important change for our clients is that is that heating of private, indoor swimming pools will cease to be eligible. Outdoor pools were already ineligible and pools in hotels, leisure centres, schools, or commercial holiday locations and so on will remain eligible. This will bring the regulations into alignment with the domestic RHI rules.

These changes will apply to new participants in the scheme and to existing ones who change their registration to add capacity or load to their system.

More details can be found on Ofgem’s and BEIS websites.


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