New tariffs for non-domestic RHI

Published:  29 May, 2014

The government announced changes to the non-domestic RHI on 28 May, introducing new technologies to be covered by the scheme and new tariffs, which may affect existing participants.

The non-domestic RHI pays organisations for every unit (kWh) of useful heat produced using eligible renewable technologies. This counts towards the UK’s 2020 renewable energy target and helps reduce the UK’s dependence on polluting fossil fuels.

Key changes to the scheme include increased support for:

New support has also been given for:

Industry has largely welcomed the changes, which it hopes will increase take-up of renewable technologies.

Dave Sowden, chief executive of the Sustainable Energy Association said: "The introduction of new technologies and increases to various tariffs are to be welcomed for a number of reasons. We are particularly pleased with the introduction of air to water heat pumps, and the improvements to the ground source heat pump tariffs, as these follow significant efforts by the industry in building a strong case for these changes, and a willingness on the part of the Minister and his officials to listen and adopt early changes where a strong case exists for doing so."

Dr Nina Skorupska, chief executive of the Renewable Energy Association said: "The RHI is now a truly world-leading renewable energy policy. Almost all renewable heat applications are now supported under the scheme, offering businesses greater choice than ever before on how to sustainably meet their heating needs. Local authorities and housing associations can also benefit from the expanded support for technologies that can feed district heating schemes, such as biomass, geothermal and energy from waste."

The Ground Source Heat Pump Association is confident the new rates should be of particular benefit to the ground source heat pump sector, with a near doubling of the tariff rates, which will significantly increase the uptake of the technology.

Ross Anderson, director of the Industrial Commercial energy association said: "We are pleased with the changes made to the existing tariffs as well as the additional tariffs. In particular it is good news for large biomass, which sees the tariff doubling to 2p/kWh. Ground source heat pumps have a change to the structure but also have increased tariffs and solar thermal sees a modest increase in tariff."

“ICOM supports DECC in the development of the non-domestic RHI which helps our members to promote renewable technologies, thereby increasing the savings of energy and greenhouse gas emissions which are needed to achieve the government’s targets.”

Clyde MacVeigh, marketing director at Dimplex Renewables said: "The improvements to the non-domestic RHI scheme are good news for both renewables installers and to organisations looking for an answer to rising heating bills."