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The Renewable Heat Incentive (RHI) for non-domestic properties

The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives.

The commercial Renewable Heat Incentive is aimed at non-domestic properties such as churches, hotels, schools and commercial premises. There is also a domestic Renewable Heat Incentive scheme which was launched in the spring of 2014.

The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources.

The scheme will pay the owners of eligible propoerties for each kWh of heat generated by an eligible installation significantly reducing payback periods for renewable heating technologies.

In a typical arrangement with a 30kW ground source heat pump, you could be generating approximately 70,000 kW. This would provide an approximate revenue of £3,290.00. Please note you would need to allow for the cost of electricity to run the heat pump, we estimate in this scenario it would equate to £2,000 depending on your tariff arrangement.

For a solar thermal installation estimated at producing 9,000kW/h your subsidy could be in the region of £800.00. If you consider then what you would save by not using oil - approximately £500.00 you can work out your overall saving of £1,300.00.

 Current tariffs as of 1st April to 30th June 2017

 Tariff name Eligible technology Eligible sizes Tariffs
Small commercial biomass Solid biomass including solid biomass contained in waste Less than 200 kWth
Tier 1
2.85
Less than 200 kWth
Tier 2
0.75
Medium commercial biomass 200 kWth and above & less than 1MWth
Tier 1
5.24
200 kWth and above & less than 1MWth
Tier 2
2.27
Large commercial biomass 1MWth and above 2.05
Solid biomass CHP systems (commissioned on or after 4 December 2013) Solid biomass CHP systems All capacities 4.22
Water/Ground-source heat pumps Ground-source heat pumps & Water-source heat pumps All capacities Tier 1 8.95
All capacities Tier 2 2.67
Air-source heat pumps (commissioned on or after 4 December 2013) Air-source heat pumps All capacities 2.57
Deep geothermal (commissioned on or after 4 December 2013) Deep geothermal All capacities 5.14
All solar collectors Solar collectors Less than 200 kWth 10.28
Biomethane injection Biomethane

On the first 40,000 MWh of eligible biomethane
Tier 1

3.56

Next 40,000 MWh of eligible biomethane
Tier 2

2.10

Remaining MWh of eligible biomethane
Tier 3

1.61

Small biogas combustion Biogas combustion Less than 200 kWth 3.20
Medium biogas combustion (commissioned on or after 4 December 2013) 200 kWth and above & less than 600 kWth 2.51
Large biogas combustion (commissioned on or after 4 December 2013) 600 kWth and above 0.95