Non-Domestic RHI tariffs and payments

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'.

For a simple system

Payments are calculated by multiplying the appropriate tariff by the amount of eligible heat generated in the relevant quarterly period. The formula is:

Payment = Tariff level x Heat generated by RHI installation

For a complex system

Once you have entered the meter readings and the three heat data figures required by the IT system on the Non-Domestic RHI Register, the ‘Eligible Heat Output’ (EHO) figure in kWhth will be calculated and displayed. This is the amount that will be multiplied by your tariff to determine the payment amount.

The formula to determine how many kWh have been produced is:

Eligible heat used on system  *  Heat generated by RHI Installation/Total heat generated on system

For a standard system

Installations using ‘standard’ metering for RHI payment purposes have two options for calculating the eligible heat output (EHO):

Option 1

Payment = Tariff Level x Heat Generated by RHI Installation (EHO)
(NB where there are NO Ineligible heat uses on the system)

Option 2

Payment = Tariff level x Eligible Heat Used by the RHI Installation (EHO)
(NB where there is NO additional ineligible heat generation plant)

For a multiple system

Installations using a ‘multiple’ metering arrangement have to submit:

• the eligible heat generated
• the eligible heat used
• the total heat generated on the system or the total heat used on the system.

Option 1

Payment =
Tariff Level x Eligible Heat Used on System x Heat Generated by RHI Installation/Total Heat Generated on System

Option 2

Payment =
Tariff Level x Eligible Heat Generated by RHI Installation x Eligible Heat Used on System/Total Heat Used on the System

Payments for Biomethane producers

Registered producers of biomethane have a separate payment calculation formula because heat is not generated in the biomethane injection process. For information see Guidance Volume 2, Chapter 6.

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

Please note:

• 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)

BEIS 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 BEIS.

Monthly deployment data

RHI mechanism for budget management: estimated commitments