Non-Domestic RHI changes for the better

A number of tariffs have been added or increased to better reflect real world costs and drive growth in a wider range of technologies.

The non-domestic RHI provides financial support for commercial and industrial companies to generate green heat. The scheme is also launching for households in the spring.

“We welcome these improvements to the world’s first Renewable Heat Incentive," says REA Chief Executive Dr Nina Skorupska. "Although the scheme has under-performed in its first two years, the Government deserves credit for listening to industry’s concerns and implementing many of the necessary changes.

“Mixed messages from Government have unnerved many in the renewables sector lately, so today’s RHI announcement gives a timely boost to the green economy. There is still room for improvement, but what the RHI needs most now is to be left alone for a while, so the market can develop without fear of further changes.”

Among the changes made to the non-domestic RHI is the inclusion of air source heat pumps. This technology will fetch 2.5p /kWh.

Dave Sowden, Chief Executive of industry body Micropower Council, says: “The inclusion of air to water heat pumps in the non-domestic scheme is particularly welcome and something we have campaigned for over the past two years and puts this technology on a fair footing with other renewable technologies.”

Other technologies now included in the non-domestic RHI are: biogas combustion over 200kW, biomass combined heat and power (CHP), deep geothermal and the full range of waste feedstocks.

Large biomass, ground source heat pumps and solar thermal have been given an uplift in the tariff rate.

Nina Skorupska adds:

“Heating accounts for half the UK’s carbon emissions, so it’s very encouraging to see these technologies receiving the attention they deserve. Add to this the springtime launch of the domestic scheme next year and you’ve got some of the key policy ingredients for sustainable growth and green jobs in renewable heating.”

For more information on the changes to the non-domestic RHI, check the DECC website: https://www.gov.uk/government/speeches/increased-support-for-renewable-heat