The Non-Domestic Renewable Heat Incentive Scheme (NDRHI) in Great Britain closed to new applicants on 31 March 2021.

What is the Non-Domestic Renewable Heat Incentive?

The Non-Domestic Renewable Heat Incentive is very similar to the Domestic Renewable Heat Incentive although it is aimed at businesses, public sectors such as education, hospitality and industrial. In addition to this, the non-Domestic RHI helps non-profit organisations and buildings where multiple residential premises are heated by a common heat pump system.

The Non-Domestic RHI provides financial incentives for over a 20-year period for the use of renewable heating products, heat pumps and biomass boilers.

Who’s Was The Scheme For?

Businesses, public sector and non-profit organisations could have applied if equipment was installed in England, Scotland or Wales on or after 15 July 2009 (or later in some cases). The installation must meet certain requirements.

What Next After the RHI?

It appears that the Government plans to move away from subsidy towards issuing instructions or prohibitions. From 2005 it has no longer been legal to install a gas boiler which was not a condensing boiler. Similar types of compulsion may be seen in future, possibly linked to planning permission.

The Chancellor announced a ban on connecting gas to new build homes from 2025 in March 2019 and the government has since published the Future Homes Standard. It is possible that such mandatory instructions will come into force before the RHI for new domestic installations ends on 31 March 2022.

The Government announced on 11 March 2020 that it will consult on introducing a new Clean Heat Grant from April 2022, when the Domestic RHI scheme will end in March 2022, to help households and small businesses invest in heat pumps, backed by just £100 million of new funding.

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