Tariffs and payments: Non-Domestic RHI

The following is a summary of the latest RHI information. For more details please refer directly to the Ofgem website:

OFGEM Non-Domestic RHI

Payments

The Non-Domestic RHI provides financial support for renewable heat technologies for 20 years. Payments are made on a quarterly basis.

Once you’re accredited, a tariff level will be assigned to your installation based on its technology (eg biomass, heat pump, solar) and size. Payments will be made based on the actual heat output of the installation. They begin to accrue from the date of accreditation of the installation.

Tariff rates are set by the Department for Business, Energy and Industrial Strategy (BEIS). You can find the current tariff tables below.

How the Retail Prices Index (RPI) and Consumer Prices Index (CPI) affect tariffs

Tariff rates are adjusted annually, in line with the relevant price index.

  • Applications submitted before 1 April 2016 have their tariffs adjusted in line with the Retail Prices Index (RPI).
  • Applications submitted on or after 1 April 2016 have their tariffs adjusted in line with the Consumer Prices Index (CPI).

Latest tariff announcement

BEIS has announced that small, medium and large biomass tariff rates and threshold boundaries are changing, effective from 20 September 2017. The tariff boundary between Tier 1 and Tier 2 for small, medium and large biomass is raising from 15% to 35%. Please see the table for new tariffs.

As a result of these changes, BEIS has confirmed that there will not be a tariff degression at the end of September 2017.

Tariffs that apply for installations with an accreditation date on or after 20 September 2017

Tariff name Eligible technology Eligible sizes Tariffs
Small commercial biomass Solid biomass including solid biomass contained in waste

From 20 September 2017 the tiering threshold for small and medium biomass will change from 15% to 35% of heat load.  From this date large biomass will move from a single, untiered tariff to a tiered tariff with the same 35% threshold.

 

Less than 200 kWth
Tier 1
2.96
Less than 200 kWth
Tier 2
2.08
Medium commercial biomass 200 kWth and above & less than 1MWth
Tier 1
2.96
200 kWth and above & less than 1MWth
Tier 2
2.08
Large commercial biomass 1MWth and above

Tier 1

2.96
1MWth and above

Tier 2

2.08
Solid biomass CHP systems (commissioned on or after 4 December 2013) Solid biomass CHP systems All capacities 4.29
Water/Ground-source heat pumps Ground-source heat pumps & Water-source heat pumps All capacities Tier 1 9.09
All capacities Tier 2 2.71
Air-source heat pumps (commissioned on or after 4 December 2013) Air-source heat pumps All capacities 2.61
Deep geothermal (commissioned on or after 4 December 2013) Deep geothermal All capacities 5.22
All solar collectors Solar collectors Less than 200 kWth 10.44
Biomethane injection Biomethane On the first 40,000 MWh of eligible biomethane
Tier 1
3.20
Next 40,000 MWh of eligible biomethane
Tier 2
1.89
Remaining MWh of eligible biomethane
Tier 3
1.45
Small biogas combustion Biogas combustion Less than 200 kWth 2.88
Medium biogas combustion (commissioned on or after 4 December 2013) 200 kWth and above & less than 600 kWth 2.26
Large biogas combustion (commissioned on or after 4 December 2013) 600 kWth and above 0.86