About the scheme
The Non-Domestic Renewable Heat Incentive (NDRHI) is a government environmental programme designed to increase the uptake of renewable heat to help reduce carbon emissions and meet the UK’s renewable energy targets. The Department for Energy Security and Net Zero (formerly the Department for Business, Energy and Industrial Strategy) closed the NDRHI scheme in Great Britain to new applicants on 31 March 2021, with some applicants able to apply up to 31 March 2023 under particular circumstances. Read our NDRHI closure page for details.
How does NDRHI work?
Accredited installations receive quarterly payments over 20 years based on the amount of eligible heat generated. The scheme operates within England, Scotland, and Wales.
There is a separate scheme for the Northern Ireland NDRHI. The Department for the Economy (DfE) suspended the Northern Ireland NDRHI scheme to new applicants on 29 February 2016.
Who is the scheme for?
The NDRHI scheme supports businesses, public sector, and non-profit organisations to increase the uptake of renewable heat by providing financial incentives. Equipment must have been installed in England, Scotland and Wales on or after 15 July 2009. There are other criteria that also must be met to be eligible. Please refer to our Applicants section for full details.
Ofgem administers the NDRHI scheme on behalf of the Department for Energy Security and Net Zero. Our responsibilities include:
- Assessing and processing applications to the NDRHI scheme
- Processing amendments made to accredited installations
- Reviewing quarterly periodic data and issuing payments accordingly
- Managing fuelling and sustainability requirements for accredited installations
- Ensuring participants comply with the NDRHI scheme requirements
- Publishing reports and data
NDRHI Scheme Changes
The Department for Energy Security and Net Zero periodically reviews NDRHI scheme policy, which means the rules can change for both existing and new participants. To maintain an accreditation and keep receiving payments, it’s important to keep up to date with the scheme rules.
We’ll publish any policy changes on the Ofgem website. Please note that the content and timing of any changes will be subject to parliamentary process.
Our updates are based on information provided by The Department for Energy Security and Net Zero.