Why Join the Commercial RHI Scheme?
● Reliable, clean green energy for your business
● Earn money from your renewable heat pump – find out how much using the RHI Calculator
● Payments over 20 years
● Reduce carbon footprint
● Over 20 Year Lifespan on many renewable heat pump models
What is the Non-Domestic/Commercial Renewable Heat Incentive?
The Non-Domestic/ Commercial Renewable Heat Incentive (RHI) is a Government programme that gives financial incentives to promote the use of renewable heating technologies. It was launched in November 2011.
As the name suggests, it primarily focuses on commercial, industrial, not-for-profit, charity and public sector organisations. If you are a homeowner looking to apply for Domestic RHI, you can find more information here. For heating and hot water purposes, we’ve traditionally relied on fossil fuels. But by switching to renewable sources under the RHI scheme, we can do our bit in helping the UK cut down its carbon emissions. Ofgem is responsible for implementing and administering the scheme on behalf of the Department for Business, Energy & Industrial Strategy (BEIS).
Payments Under Commercial Renewable Heat Incentive
Commercial RHI provides annual payments over 20 years to the proprietors of the heating equipment that’s index-linked to the heat produced and used. As soon as your installation is approved by Ofgem, the quarterly readings of your heat meter will ascertain the payments that follow every quarter. Every three months, the RHI tariffs are evaluated and adjusted as per the increase and decrease in the Consumer Price Index (CPI)
What is the Purpose of the Scheme?
By providing a long-term financial incentive, the objective of the Non-Domestic RHI is to significantly increase the proportion of heat generated from renewable sources. By driving change in the energy
sector currently dominated by fossil fuel technologies, the RHI can help the UK meet EU targets to reduce carbon emissions and improve energy security.
Who Can Apply for Non-Domestic RHI?
The Non-Domestic RHI is open to any business with eligible installations, and to producers of biomethane. In the context of the scheme, a non-domestic installation is a renewable heat unit that supplies large-scale industrial heating to small community heating projects.
This includes, for example, small businesses, hospitals and schools as well as district heating schemes where one boiler serves multiple homes. Get your quick quote here!
Technologies Eligible Under the Commercial RHI Scheme
Mentioned below is a list of technologies currently covered by the scheme:
● Air Source Heat Pumps or ASHP (including both air-to-air and air-to-water technologies)
● Combined Heat and Power (CHP) technology for solid biomass
● Biogas and Geothermal Technologies
● Solar Thermal
● Solid Biomass contained in waste
Key Eligibility Standards Under the Commercial RHI Scheme
● The claimant must be the owner/proprietor of the installed heating technology.
● Air-to-water heat pumps, solid biomass CHP technologies and biogas technologies with a capacity of over 200kW should be commissioned on are after 4th December 2013.
● The equipment must be brand new at the time of purchase
● If you’ve received a grant from public funds, in most circumstances it has to be repaid.
● The means of transferring heat should either be liquid or steam. This means no direct heating.
● The equipment should be MCS certified or equivalent EN45011 or ISO 17065 approved if capacity is 45kW.
● The metering arrangements must be done correctly. This means that the right type of meters should be calibrated and fixed in appropriate locations.
● The equipment installed mustn’t be used to heat a single domestic property.
● Annual budgets for the RHI are fixed so the Government needs to ensure that the scheme stays within budget and that it is value for money to the taxpayer who funds the scheme.
● At the same time, those who are considering installing renewable heat need to know what support is likely to be available to them.
● The means of controlling the budget for the non-domestic RHI since April 2013 until March 2016 is through degression, which operates by gradually lowering the tariffs which can be paid to new applicants as more renewable heating systems are installed.
● Tariffs are only reduced as estimated spend on the non-domestic scheme reaches certain expenditure thresholds or “triggers”.
● Initial reductions to tariffs are low – at 5%. Strict rules govern future reduction levels meaning that these will not always occur.
● Announcements confirming whether there will be a tariff reduction will take place quarterly. In case any reduction, there’ll be one month’s prior notice before becoming effective.
● Applicants who are accredited or registered onto the scheme once the notice period ends will receive the new (reduced) tariffs. Those who have already been accredited or registered onto the scheme will continue to receive the previous tariffs.
● Monthly updates of how the scheme is performing and progress towards the expenditure thresholds will be published on the DECC section of the GOV.UK website.
Non-domestic/Commercial RHI Application Information
To apply for the commercial RHI (Renewable Heat Incentive) you need to complete an application form on the Non-Domestic RHI Register which has to be supported with documents and evidence.
Because this can be quite an elaborate procedure, J L Phillips employs the services of an outside firm of Energy Assessors who apply for Non-Domestic RHI on your behalf. The company has a 100% success rate when it comes to applying for RHI for our commercial customers.
Our Sales Manager will provide a cost for this service at the point of quotation.
If you would like to apply for the Non-Domestic RHI yourself, you can find all the information and guidance documents on the Ofgem website using the link below:Apply for Commercial RHI
Can I Speed Up My RHI Application Process?
Preparing in advance for the RHI application process is extremely important. Perusing through the Ofgem website and reading up on the ‘How To’ guides will go a long way. Ensure that you have everything you need before you apply for a claim under the RHI scheme.
What Prolongs The Process of RHI application?
Observations made by Ofgem show that most errors happen because people misinterpret the information on the site. Many attempt to complete the RHI application without referring to the RHI Guidance published on the Ofgem page. They’re inadequately prepared for the technical questions in the application form and often do not have the necessary documents required that prove their eligibility to the scheme.
In such cases, the application process can be extremely slow. This is why it’s important to be thorough with your application. Alternatively, you can consult JL Phillips as we’re the industry experts when it comes to applying for the RHI scheme.
We’ll extend complete support and guidance every step of the way.
How Can You Stay Compliant To the Renewable Heating Incentive Scheme?
Once you’ve prepared your application and submitted it along with supporting documents, you’ll receive an official confirmation from Ofgem. This means that you’ve been accredited to the RHI scheme.
Once this is done, you’ll have to ensure that you stay compliant to the RHI obligations. We’ve listed these ‘continuing’ obligations below:
● Presenting your meter readings and periodic data on a regular basis to receive timely RHI payments.
● Maintaining a fuel log and storing fuel purchase receipts if you have biomass technology installed.
● If you have area biomethane producer or biogas or biomass systems, checking that the fuel you use is sustainable while submitting quarterly reports.
● Ensuring that proper maintenance and servicing of the installation is carried out by experienced professionals. Also, storing receipts of maintenance and servicing.
● Keeping Ofgem up to date regarding any alterations you make in the installation.
● Signing and submitting annual declarations.
RHI Fuel logs
If you have a biomass boiler installed, which is fed by woodchip, you must, under new Ofgem legislation, keep an up to date log of the source of your woodchip. Failure to do this could result in the cessation of your Non-Domestic R.H.I payments. You will be asked to provide all your records whenever your installation is audited. You may also be asked to provide them at other times.
The above applies to Non-Domestic installations under 1 MW only and is in place so that Ofgem can “verify that there is no fossil fuel contamination and that only 100 per cent biomass is used in your installation.”
For full information on this please visit the Ofgem website here.
Woodchip / Wood Pellet Suppliers
To find a reputable woodchip or pellet supplier in your area, who will supply quality products that meet the R.H.I standards, visit the B.S.L (Biomass Suppliers List) website here: http://biomass-suppliers-list.service.gov.uk/
You can simply type in your postcode and search for suppliers in your area. You can also call them on 0207 090 7769 or shoot a mail on email@example.com
J L Phillips Renewable Energy is happy to recommend the following suppliers of woodchip and pellet;
Forest Fuels Woodchip & Pellet suppliers covering the East Midlands & National Tel: 01409 281977 Email:firstname.lastname@example.org http://www.forestfuels.co.uk/
Forever Fuels Wood Pellet Suppliers covering the East Midlands & National Tel: 01628 509690 Email: email@example.com http://www.forever-fuels.com/
MWF Sustainable Wood Heat Wood Chip Suppliers covering the East Midlands & National Tel: 01952 621030 Email: firstname.lastname@example.org http://www.wood-fuel.co.uk/
How Do JL Phillips Help?
JL Phillips has been in the design and installation business for a decade giving us an industry experience that’s unmatched and bespoke. We work with our customers closely to understand and meet their requirements.
To know if the Commercial RHI scheme would suit your business, or if you’re interested in finding out if our products are a good solution for your needs, get in touch with us today.