The Non Domestic Renewable Heat Incentive scheme (NDRHI) provides financial support for renewable heat technologies for 20 years. We make payments on a quarterly basis. Providing you’ve correctly sent us the information we require, we aim to pay you within 40 working days from the date we receive it.
Once you’re accredited, a tariff rate 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 Energy Security & Net Zero. For more information about tariffs and payments see Guidance Volume 2, Chapter 6 of our main guidance.
Read the tariff rates for 2023-24.
How payments are calculated
You are paid a certain amount per kilowatt hour (kWhth) and calculations are made according to whether your system is designated “simple” or “complex”, or for applications submitted from 24 September 2013, 'standard' or 'multiple'. Find out more about “simple” and ”complex” systems in our NDRHI Guidance Volume 1.
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).
For more details, see Guidance Volume 2, Chapter 6.
Scheme budget management (degression)
The Department for Energy Security & Net Zero is responsible for the overall scheme budget. They provide regular updates on scheme expenditure and adjust tariffs accordingly to ensure the scheme does not breach its budget. See the links below for additional information published by the Department for Energy Security & Net Zero.
RHI mechanism for budget management: estimated commitments