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Non-Domestic RHI eligibility criteria and how businesses can apply

It's no secret that the UK Government has set the target to be climate neutral by 2050 - and to achieve that landmark renewable energy will play a key role.

As part of this long-term strategic drive, businesses are being offered incentives to switch to renewable heating systems - bringing long-term energy savings and security of supply.

This opportunity is available to your business, but it's important to take advantage immediately.

What is the Non-Domestic Renewable Heat Incentive (NDRHI) scheme?

The Non-Domestic RHI is a Government-backed environmental programme which encourages businesses and organisations to switch from fossil fuels to renewable heat by offering financial incentives.

First introduced in November 2011, the scheme applies to England, Scotland, and Wales. A 14-month extension had already been announced to the scheme, which was set to close to new applicants from 1st April 2021.

However, on August 17, 2020, the Department for Business, Energy and Industrial Strategy (BEIS) said that due to a number of businesses saying they would struggled to meet the deadline for non-tariff guaranteed projects, due to the impact of Covid-19, it has now granted a further six-month extension for projects that have invested capital into project development.

These projects will be now be able to submit a properly made full application for accreditation until 30 September 2021 so long as they submit an extension application during a window set to open in March 2021.

As part of this application, there will be an additional requirement for evidence that the applicant invested capital in the project prior to the announcement of the extension.

What is the Non-Domestic RHI eligibility criteria?

The NDRHI scheme is available to any business, public sector or not-for-profit organisation which wants to install a renewable heat source application.

The scheme encourages switching by offering payments per kWh of heat produced - therefore subsidising the installation, fuel, and servicing costs.

Whilst full eligibility details are available here from Ofgem, many applicants can find this confusing.

If you’d 'like us to quickly explain whether you fit the criteria, please send an email or call 01430 449440 to arrange an informal discussion.

When will I receive payments? And how long will they last?

Eligible installations are able to receive a quarterly payment for a 20-year period from the date of installation, based on the amount of heat generated.

What renewable technology can qualify for the NDRHI?

The following types of installation can be commissioned and fully accredited on the NDRHI scheme:

• Solid Biomass Combined Heat & Power
• Biomass applications over 1MWth
• Biogas applications over 600kWth
• Geothermal applications of all sizes
• Biomethane applications of all sizes
• Ground source heat pumps over 100kWth
• Water source heat pumps over 100kWth

At CambridgeHOK Energy, we start the process by evaluating your heating requirements and modelling the application which could offer the biggest benefits to your business.

We provide full turnkey energy solutions, having designed and built a multitude of large energy centres. We will support you through conceptual design, planning and funding stages to commissioning and hand back.

How do you apply to the Non-Domestic RHI scheme?

The Non-Domestic RHI application form is available online and claims can be made without any assistance.

However, we often find some people give up at an early stage because they are put off by the form filling and bureaucracy involved.

Even the official Ofgem RHI application form warns of the main pitfalls to avoid if you want a funding request to be successful and processed quickly.

In our experience, the most common mistakes include:

• Missing and/or incomplete documents.
• Insufficient details included.
• Incomplete applications.
• Poor or low-quality Independent Report on Metering Arrangements (IRMA).
• Installation capacity entered as MW instead of kW.
• Poor or low-quality schematic diagram.
• Out-of-date meter readings.
• Work in partnership with CambridgeHOK Energy and we'll oversee this entire process on your behalf, making it much more likely that your project will succeed and qualify for every available NDRHI incentive.

To discover if renewable heat can reduce your energy bills and future proof your company, get in touch or call 01430 449440 for non-domestic RHI guidance tailored to your needs.

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