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.
Are you looking to diverse your business and become energy independent?
Installing a renewable heating system within your business sector will not only help to reduce your carbon footprint, but it will also mean you’re much less dependent on conventional energy and their ever-increasing prices, saving you money in the long run.
How Does the Payment Work Out?
The Non-Domestic RHI is a tariff-based system. The table below shows the current Non-Domestic RHI tariffs for heat pumps, biomass boiler and solar thermal. These tariffs represent the amount you receive for each unit of heat output generated by your heat pump.
Non-Domestic RHI Tariff Rates 2020/2021
|Technology||Current RHI Tariff’s (per/kWh)|
|Air Source Heat Pump||2.79p|
|Ground Source Heat Pump||Tier 1 – 9.68p|
|Tier 2 – 2.89p|
|Biomass Boiler||Tier 1 – 3.15p|
|Tier 2 – 2.21p|
What Do The Tiers Mean?
The tier 1 tariff is applied to the ‘initial heat’, which is the amount of heat, in kWh. Generated by the heat pump installation if the running at capacity for 15% of the year (1,314 hours).
The tier 2 payment is paid on the rest of the output for the year.