Price-based mechanisms (Domestic Renewable Heat Incentive)
Updated: 19.01.2019
Author: Georgios Maroulis
The Non-Domestic Renewable Heat Incentive (RHI) is a scheme targeted at supporting non-domestic RES-H installations with a fixed amount per kWth produced which is payable for 20 years. The payment is provided to industry, businesses and public sector organisations. The scheme was launched in November 2011 in Great Britain. In Northern Ireland the Northern Ireland Renewable Heat Incentive (NIRHI) was launched in November 2012 and is suspended for new application since 29 February 2016. Furthermore, the Department for Business, Energy & Industrial Strategy (BEIS) has published a response to its consultation on changes to the Non-Domestic Renewable Heat Incentive (RHI) scheme. New changes to the scheme were introduced in 2018.
Eligible technologies
Aerothermal, Hydrothermal, Biogas, Biomass, Geothermal and Solar thermal are eligible technologies, provided the installations are used in a building for heating a space, water or for carrying out a process or used otherwise than in a building for cleaning or drying (on a commercial basis) (reg. 3(2) RHISR 2018). Plants must also comply with the technical requirements related to metering and steam measuring outlined in Part 2, Chapter 3 of the RHISR 2018. CHP plants are also eligible. More specifically, CHP that generate heat and power from solid biomass, biogas and deep geothermal energy (reg. 12(5) RHISR 2018).
| Aerothermal energy | Eligible (air source heat pumps). The coefficient of performance must be at least 2.9 and seasonal performance factor of at least 2.5. For plants under 45 kWth certification and accreditation under the Microgeneration Certification Scheme (MCS) is required (reg. 10 RHISR 2018). Furthermore, the installations designed for cooling and use heat in air which has been expelled by buildings and directly from a process which generates heat (reg. 10 (e) and (f) RHISR 2018). |
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| Hydrothermal energy | Eligible (heat pumps using surface water as source). The coefficient of performance must be at least 2.9 and seasonal performance factor shall be at least 2.5. For plants under 45 kWth certification and accreditation under the Microgeneration Certification Scheme (MCS) is required (reg. 8 RHISR 2018). |
| Biomass | Eligible (solid biomass). For plants under 45 kWth certification and accreditation under the Microgeneration Certification Scheme (MCS) is required (reg. 5 RHISR 2018). No capacity limitations are imposed, though capacity impacts on the tariff level in Great Britain. In Great Britain, plants that have submitted their applications for accreditation on or after 24 September 2013, should additionally obtain environmental permits or an RHI emission certificate (reg. 5(1)(c) RHISR 2018). Solid biomass contained in waste (in Great Britain) is also eligible (reg. 7 RHISR 2018). In Great Britain, CHP plants using solid biomass (excluding solid biomass contained in waste) alone or in combination with any other source of energy provided that the combustion unit is new and was first commissioned as part of CHP system on or after 04 December 2013 (reg. 13 RHISR 2018). |
| Geothermal energy | Shallow Geothermal: Eligible (heat pumps using the heat in the ground as energy source). The coefficient of performance must be at least 2.9 and the seasonal performance factor shall be at least 2.5. For plants under 45 kWth certification and accreditation under the Microgeneration Certification Scheme (MCS) is required (reg. 9 RHISR 2018). Share ground loop systems i.e. a system in which a ground loop provides heat energy through a hydraulic connection to two or more ground source heat pumps installed in separate or the same premises are also eligible (reg. 11 RHISR 2018). Deep Geothermal: Eligible, if the plant generates heat using naturally occurring energy located and extracted from at least 500 metres beneath the surface of solid earth (reg. 14 RHISR 2018). |
| Solar thermal energy | Eligible up to a capacity of 200 kWth. For plants under 45 kWth certification and accreditation under the Microgeneration Certification Scheme (MCS) is required (reg. 8 RHISR 2018). In addition, the collector type must be flat plate or evacuated tube (reg. 2 RHISR 2018). |
Amount
The tariffs are calculated on a quarterly basis and published by Ofgem each year by 15th March, 15th June, 15th September and 15th December respectively (art. 33(2) Domestic RHISR 2014). Tariff rates for the period from 20 September 2017 are provided below (see the “Amount” section).
| Aerothermal energy | Tariff rates for air-source heat pumps from 22 May 2018: In Great Britain: All capacities (commissioned on or after 04 December 2013): p 2.69 (€ct 3.04) per kWth. |
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| Hydrothermal energy | Tariff rates from 22 May 2018: In Great Britain (Tariff rates from 22 May 2018): All capacities:
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| Biomass | Tariff rates from 22 May 2018: In Great Britain (Tariff rates from 22 May 2018): Small commercial biomass (solid biomass including solid biomass contained in waste) (less than 200 kWth):
Medium commercial biomass (200 kWth and above and less than 1MWth):
Large commercial biomass (1MWth and above):
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| Geothermal energy | Tariff rates from 22 May 2018: In Great Britain (Tariff rates from 22 May 2018): Shallow geothermal:
Deep geothermal, including CHP systems generating heat and power from geothermal energy (all capacities commissioned on or after 04 December 2013): p 5.38 (€c 6.08) per kWth |
| Solar thermal energy | Tariff rates from 22 May 2018: In Great Britain (Tariff rates from 22 May 2018): All solar collectors (less than 200 kWth): p 10.75 (€ct 12.15) per kWth |
| Biogas | Tariff rates from 22 May 2018: In Great Britain (Tariff rates from 22 May 2018):
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Addressees
Entitled party: owners/occupants of the property the domestic RHI installation heats (art. 10 Domestic RHISR 2014).
Procedure
Process flow | 1 – The applicant provides a written application for accreditation complete with the documents and information requested in Schedule 2 of the RHISR 2018 (reg. 30(2) RHISR 2018). For biomethane injection a registration instead of an application is required. Application for registration has also to be submitted in written form alongside with the documents and information specified in Schedule 2 of the RHISR 2018 (reg. 32(2) RHISR 2018). 2 – The authority checks the presented information and may require some additional pieces or provide an inspection on site (reg. 30(4) RHISR 2018). For biomethane producers similar provisions are foreseen (32 (3-4) RHISR 2018). In any case, applicants may submit the necessary information within 4 weeks (30 (4) and 32(4) RHISR 2018). 3 – If the Authority believes the application is correct and the installation is eligible, the Authority will accredit the installation by including it in a registry, notifying the applicant and providing a statement of eligibility indicating accreditation date, applicable tariff, process and timing for meter readings, details of the frequency and timetable for payments and tariff lifetime / end date (reg. 30(9) and 32(10) RHISR 2018 ). 4 – The applicant may apply for a preliminary accreditation of a RES-H installation, which has not yet been commissioned. The Authority must not grant preliminary accreditation, if for this plant any necessary planning permission has been granted or is not required (reg. 33 (2) and 34 (2) RHISR 2018). |
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Competent authority | The Non-Domestic RHI is administered by Ofgem for England, Wales and Scotland: |
Degression
In Great Britain: Prices are adjusted according to the relevant measure of inflation, i.e.
- the retail prices index, if the tariff start date is earlier than 1st April 2016
- the consumer prices index, if the tariff start date is on or after 1st April 2016 (reg. 37(11) RHISR 2011).
Cap
Eligibility period
20 years (reg. 59(1) RHISR 2018)
Distribution of costs
| State | The Domestic RHI is being funded from the general government spending, as stated on the website of the Department of Energy and Climate Change (BEIS). |
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United Kingdom
