Renewable Heat Incentive – Commercial RHI
Owners of ground source heat pumps systems (and other eligible renewable heat technologies) installed since 15 July 2009, can apply to Ofgem to be paid 8.84 pence/kWhour of renewable heat generated for the next 20 years.
The Renewable Heat Incentive can be received by owners of non-domestic buildings for 20 years based on the metered heat delivered from ground source heat pumps.
Tariffs for GSHPs Double with effect from May 2014
The RHI tariff table below shows the technologies eligible for Commercial RHI and the subsidy received for each technology. The RHI provides a major incentive for owners to invest in ground source heat pumps and solar thermal renewable heat technologies. The tariffs are based on pence/kWh of renewable heat delivered.
Dramatically increased rates for GSHPs were proposed in DECC's May 2013 Consultation, subsequently confirmed on 4 December 2013 and brought into effect from 28 May 2014. These revised rates apply to installations accredited with Ofgem after 21 January 2013. The grants vary with the technology and scale used as follows:
paid over 20 years
pence/kWh at 1 Jan 2015
pence/kWh from 1 April 2015
pence/kWh from 1 July 2015
pence/kWh from 1 Oct 2015
pence/kWh from 1 Jan 2016
|Air to water heat pumps¹||all scales||2.5||2.54||2.54||2.54||2.54|
|Solar thermal||< 200 kW||10.0||10.16||10.16||10.16||10.16|
|Solid biomass²||< 200 kW||6.8²||5.87²||4.40²||4.18²||3.76²|
¹No RHI is paid for air to water heat pumps if they are also capable of providing cooling.
RHI rates for small biomass fall to 1.00p² for use over 15% of the full rated annual capacity.
RHI rates for ground source heat pumps fall to 2.64p for use over 15% of the full rated annual capacity.
² Small biomass fell from 8.8p to 8.4p in July 14, to 7.6p from Oct, to 6.8 from Jan, to 5.87p from April,
to 4.4p from July, to 4.18 from October and to 3.76 from January 2016.
A further fall in small biomass tariff is expected on 1 April 2016.
Additional specialist commercial RHI tariffs
Following announcements from DECC in December 2013, there are also be specialist commercial RHI tariffs for additional technologies available from 28 May 2014. The rates from 1 July 2015:
paid over 20 years
from 1 July 2015
from 1 Oct 2015
from 1 Jan 2016
|Solid Biomass CHP||4.17||4.17||4.17|
|Biogas - small||< 200 kW||7.62||7.62||7.62|
|Biogas - medium||200 - 600||5.99||5.99||5.99|
|Biogas - large||> 600 kW||2.24||2.24||2.24|
|Municipal solid waste||2.03||2.03||2.03|
|Commercial and industrial waste||2.03||2.03||2.03|
RHI rates change with inflation each year.
A ground source heat pump provides an excellent method for providing emission free heating and avoiding further rises in energy bills, as well as attracting RHI, but they must be installed by an experienced contractor for the full potential to be realised.
Please verify if your contractor is a member of the GSHP Association.