Tariffs and payments: Non-Domestic RHI

Tariffs

Click to view the 2019/20 rates for the Great Britain Non-Domestic RHI scheme, which are displayed in pence per kWhth.

Payments

The Non-Domestic RHI provides financial support for renewable heat technologies for 20 years. We make payments on a quarterly basis. As long as 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 Business, Energy and Industrial Strategy (BEIS).  For more information about tariffs and payments see Guidance Volume 2, Chapter 6 of our main guidance.

Latest Tariff announcement

BEIS has announced that there will be no degressions on 1 July 2019.

 

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'.

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.

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.

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)

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

 

Publications and updates

  • Published: 19th Jun 2019
  • Guidance
  • 1 Associated documents
Non-Domestic RHI tariff table publication page

  • Published: 30th Nov 2015
  • Guidance
  • 0 Associated documents
On 30 November 2015, DECC announced a 10% reduction to the biomethane for injection tariff and a 10% reduction to the small commercial biomass tariff.