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Non-Domestic RHI upgrade - Better for business!

Improvements to the non-domestic renewable heat incentive (RHI) were announced yesterday by the Renewable Energy Association.

They key changes to the scheme are:

 Increased support for:

  • Large biomass heat projects
  • Deep geothermal heating
  • Ground source heat pumps
  • Solar heating

New support for:

  • Air source heat pumps
  • Biomass combined heat and power (CHP)
  • On site combustion of biogas from anaerobic digestion at all scales. (Previously limited to <200Kw)
  • Waste based heating projects using commercial and industrial waste as well as municipal solid waste.

Preliminary registration for biomethane plants to help developed plan their projects.

These changes reduce the tariff degeneration triggers for large biomass, biomethane injection, and ground source heat pumps, as well as significantly increasing the triggers for small and medium biomass.

REA Chief Executive Dr Nina Skorupska said: “The RHI is now a truly world-leading renewable energy policy. Almost all renewable heat applications are now supported under the scheme, offering businesses greater choice than ever before on how to sustainably meet their heating needs. Local authorities and housing associations can also benefit from the expanded support for technologies that can feed district heating schemes, such as biomass, geothermal and energy from waste.”

Julian Morgan-Jones, Interim Chairman of the Wood Heat Association, said: “Under the previous cost-control mechanisms, wood heat was being unnecessarily constrained in order to preserve head room in the budget for heat pumps that was clearly not going to be used. The revised cost control mechanisms more closely match real world deployment and will ensure that wood heat can maximise its contribution to cost-effective emissions savings and renewable energy targets.”