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:
|Renewable Heat Incentive
pence/kWh at 1 January 2015
pence/kWh from 1 April 2015
pence/kWh from 1 July 2015
|Ground source heat pumps||all scales||8.7||8.84||8.84||20|
|Air to water heat pumps¹||all scales||2.5||2.54||2.54||20|
|Solar thermal||up to 200 kW||10.0||10.16||10.16||20|
|Solid biomass²||up to 200 kW||6.8²||5.87²||4.40²||20|
|Solid biomass||200-1,000 kW||5.1²||5.18²||5.18²||20|
|Solid biomass||over 1,000 kW||2.0||2.03||2.03||20|
¹No RHI is paid for air to water heat pumps if they are also capable of providing cooling.
RHI rates for medium and small biomass fall to 1.17p² 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 on 1 July, to 7.6p on 1 Oct, to 6.8 from 1 Jan, to 5.87p from 1 April and to 4.4p from 1 July 2015.
A further fall in small biomass tariff is expected on 1 Oct 2015.
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:
|Renewable Heat Incentive
|Scale||Revised RHI tariffs
|Solid Biomass CHP||4.17||20|
|Biogas - small||< 200 kW||7.62||20|
|Biogas - medium||200 - 600||5.99||20|
|Biogas - large||> 600 kW||2.24||20|
|Municipal solid waste||2.03||20|
|Commercial and industrial waste||2.03||20|
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.