Renewable Heat Incentive for non-domestic customers

The non-domestic Renewable Heat Incentive (RHI) scheme was suspended on 29 February 2016.

Tariffs for installations

The table below shows the tariffs for each technology type from 1 April 2017. These tariffs have been adjusted in line with the Retail Price Index (RPI) and rounded to the nearest tenth of a penny.

Tariff name Eligible technology Eligible sizes Tariff rate 2017/18 from 1 April 2017 (p/kWh)
Small commercial biomass and municipal solid waste Commercial biomass / waste <20 kWth

Tier 1: 7.0

Tier 2: 1.5

Medium commercial biomass and municipal solid waste Commercial biomass / waste 20 to <200 kWth

Tier 1: 6.7

Tier 2: 1.5

Large commercial biomass and municipal solid waste Commercial biomass / waste 200 to <1 MWth 1.5
Small commercial heat pumps and deep geothermal Ground/water-source heat pumps and deep geothermal <20 kWth 9.3
Medium commercial heat pumps and deep geothermal Ground/water-source heat pumps and deep geothermal 20 to <100 kWth 4.8
Large commercial heat pumps and deep geothermal Ground/water-source heat pumps and deep geothermal >100 kWth 1.3
All solar collectors Solar collectors <200 kWth 9.4
Biomethane injection Biomethane All capacities 3.4
Biogas combustion Biogas combustion <200 kWth 3.4

Changes to the tariff system

The Renewable Heat Incentive Scheme (Amendment) Regulations (Northern Ireland) 2017 came into operation on 1 April 2017.  These regulations will cease to have effect on 31 March 2018.

The Regulations apply the 'tiered' tariff system first introduced on the 18 November 2015, to all small and medium biomass installations accredited on or before the 17 November 2015.  This means that the table above applies to all accredited installations on the scheme, no matter when they joined the scheme (so there will be no change to installations with an accreditation date on or after 18 November as they are already on the 'tiered' tariff system). The Regulations also mean that biomass installations with a capacity between 100 and 199kWth are now treated as medium biomass, rather than large biomass.

The 'tiered' tariff system

This ‘tiered’ tariff structure operates on a 12 month basis, starting with an installation’s date of accreditation or its anniversary. During this 12 month period, the initial amount of heat generated by the installation running at its installation capacity for 1,314 hours will be paid at the higher Tier 1 tariff. Any further heat generated during this 12 month period will be paid at the lower Tier 2 tariff, up to a maximum of 400,000kWhth. 

On the first anniversary of the date of accreditation after 1 April 2017, the amount of generated heat will be taken to start again from zero and the tiered tariffs will be applied until the next anniversary of the installation’s accreditation or a further change in the Regulations.

Meter readings and payments

You must continue to submit meter readings so that the following year’s payments can be calculated accurately. When you submit your meter readings each quarter, Ofgem can determine how much heat you have generated cumulatively over the 12 months since your anniversary date. 

Ofgem will tell you via a message on the RHI Register if you have reached your 400,000 kWhth cap based on your submitted meter readings and pay you for all eligible heat output up to this cap. If you have generated more than the 400,000kWhth cap in the relevant year and been paid for it, you will receive no further payments up to your anniversary date. However you must continue to submit meter readings even after passing this cap.

Worked example

AN Other Engineering has two 99kW biomass boilers, both accredited on 7  June 2015.  Both received a tariff of 6.5p per kWh up until 1 April 2017. 

At 1  April 2017, boiler 1 has been running for 2,058 hours, therefore payments for it move to Tier 2 and all useable heat generated from this point, up to the cap of 400,000kWth, will be paid at 1.5p until the anniversary of the accreditation date of 7  June. 

On 7 June 2017, the company will once again receive payments at the higher (Tier 1) tariff until it has been running for 1,314 hours.

Boiler 2 has been running for 975 hours on 1 April 2017, therefore the changes will not impact on payments for this boiler and it will continue to receive the higher (Tier 1) tariff of 6.7p until it reaches 1,314 hours.

Additional actions

No additional action is required at present; you should continue to submit your meter readings and comply with your ongoing obligations as usual. If any additional information is required you will be contacted directly.

Further advice

If you need further advice, please contact Ofgem's dedicated RHI enquiry line:

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