Launched in 2011, the non-domestic Renewable Heat Incentive (NDRHI) helps businesses, public sector and non-profit organisations meet the cost of installing renewable heat technologies. Now the scheme is set to close in March 2021.
The Non-Domestic RHI
The Non-Domestic Renewable Heat Incentive ("Non-Domestic RHI") is similar to the Domestic Renewable Heat Incentive however it is aimed at businesses, the public sector and non-profit organisations, as well as buildings where multiple residential premises are heated by a common heat pump system. The Non-Domestic RHI is a Government programme which provides financial incentives over a 20 year period for the use of renewable heating products, such as ground source heat pumps and air source heat pumps.
You can read more about it on our dedicated webpage:
When does the Non-Domestic RHI close?
The Non-Domestic RHI scheme is timetabled to close on 31st March 2021, which is when the current budget allocation of funding runs to. In a recent Government consultation, the Government confirmed it’s plans to enact the closure of the scheme at this time.
“The Non-Domestic RHI is timetabled to close on 31st March 2021.”
What will replace the Non-Domestic RHI scheme?
The Government has set out some proposals for some schemes to replace the non-domestic RHI scheme, however at present there is not a huge amount of detail regarding any such replacement schemes. Both directly and through our association, the Ground Source Heat Pump Association, Alto Energy has been responding to the Government consultation stressing the need for continued support for non-domestic installations.
What if I have, or am thinking about, a project?
If you are currently in the process of installing a heat pump that would be eligible under the non-domestic RHI scheme, or are thinking about embarking on one, then it is important to complete the project and apply for the Non-Domestic RHI prior to the close date on 31st March 2021.
“It is important to complete the project and apply for the Non-Domestic RHI prior to the close date on 31st March 2021”
What About Tariff GuaranteeS?
A tariff guarantee allows applicants to the Non-Domestic RHI to secure a tariff rate before their installation is commissioned and fully accredited on the RHI. The Government introduced a new window for tariff guarantees that would enable projects to extend beyond the deadline, however this is only available for ground source heat pump projects above 100kW in installation capacity.
What if I’m already receiving non-domestic rhi payments?
If you’ve already completed a project accredited under the non-domestic RHI scheme and are in receipt of payments then there is nothing you need to do. As has always been the case, any closure of a scheme will only effect new applicants and will not impact anyone who has already registered.
What about the Domestic RHI scheme?
Everything in this article relates to the Non-Domestic RHI scheme. The vast majority of our customers’ projects are residential in their nature, and as such they fall under the eligibility criteria for the Domestic Renewable Heat Incentive (“Domestic RHI”). You can read more about the Domestic RHI scheme on our dedicated page here:
The Domestic RHI is currently funding for new applications until 31st March 2022, which is great news if you are considering installing a ground or air source heat pump into your home or self build project.
There has never been a better time to install a heat pump system. In addition to the significant ongoing running cost savings you can make by replacing fossil fuels with renewable heat, the level of support available under the Domestic RHI scheme is very generous, with annual repayments of up to £1,500 per year for air source heat pumps, and up to around £4,000 per year for ground source heat pumps.