The Commercial RHI

Although the Renewable Heat Incentive (RHI) for Homeowners has yet to be finalised, the Commercial RHI is up and running and many non-domestic heat generators are already benefiting from the scheme.

The information below will help you understand more about the Commercial RHI.

What is the Commercial RHI?

The Commercial RHI is described as a Government scheme that provides financial support to non-domestic renewable heat generators and producers of bio-methane. It will be administered by the energy regulator Ofgem and is designed to provide long terms support for a range of renewable energy products including Solar Thermal systems and Biomass boilers as well as Ground Source Heat Pumps and Air Source Heat Pumps.

  The scheme applies to installations completed after
  15th July 2009 and will be subject to regular
  maintenance being in place and periodical inspection.

  Aims & Background of the RHI

  The Renewable Heat Incentive (RHI) is the first such
  scheme of its kind in the world and will play an
  important part in reducing our reliance on fossil fuels
  and to meet the UK's renewable energy target which is
  15% of all our energy derived from renewable sources
  by 2020.




The RHI will represent over £860m of investment into renewable heating industry and is expected to kick start these technologies and make them mainstream so grant funding is no longer required.

How will the Commercial RHI work?

The Commercial RHI is currently not available for Air Source Heat Pumps. Only Ground Source Heat Pumps can receive this grant in its initial form. Air Source is expected to be added to the eligible technologies in Phase 2 of the Commercial RHI.

The Commercial RHI is paid based on the heat supplied by the renewable energy equipment. This means that Heat Pumps will require a heat meter to measure the quantity and rate of heat generation over time.It is possible to have alternative or supplementary heating systems in conjunction with a heat pump but only the heat generated by the Heat Pump will qualify for the Commercial RHI.

The owner of the equipment receives the Commercial RHI regardless of who occupies the building and payments are made quarterly over a period of 20 years based on heat meter readings and adjusted annually in line with inflation.
 
Like the Feed-in-Tariff, the Commercial RHI is expected to be reduced over time but any installations already on the scheme will receive their existing tariff levels.

What are the tariff levels for the Commercial RHI?

The table below demonstrates the tariff's available via the Commercial RHI:

What are the benefits of the Commercial RHI?

The Commercial RHI is designed to overcome the difference in costs between a conventional heating system and make renewable heat an option. Some buildings, particularly off the natural gas grid can make large fuel cost savings. Return on investment for this kind of project is typically 6-8% and inflation linked but fuel cost savings can make this much more attractive.

It is intended that in most cases RHI payments will enable adopters of renewable energy systems like Ground Source Heat Pumps and Air Source Heat Pumps to recoup the installation costs of the equipment and provide additional income on top.

For more information about a specific project please give our Commercial Sales team a call on 01865 882202 selecting option 1 then option 3.