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Renewable Heat Incentive UK: Non-Domestic RHI Guide

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
The Renewable Heat Incentive, commonly shortened to RHI, has been one of the most significant government-backed schemes encouraging UK organisations to move away from fossil fuel heating. For businesses, public bodies, and charities, the non-domestic arm of the scheme has historically offered quarterly payments in return for generating heat from approved renewable sources. Although the scheme has closed to most new applicants, many organisations remain on existing agreements and continue to receive payments under the original terms. If you are already accredited, or you are trying to understand how legacy obligations affect your operations, getting the rules right still matters. This guide explains how the non-domestic scheme works, which technologies qualify, the eligibility rules that applied at application stage, and the ongoing compliance duties owed to Ofgem. Successor schemes and alternatives for new installations are also touched on so you can see where the landscape sits today.

Overview

The Renewable Heat Incentive is a UK government scheme set up to reward the generation of heat from renewable sources. It operated in two distinct streams: one for households (the Domestic RHI) and one for organisations (the Non-Domestic RHI). This page focuses on the non-domestic side, which was aimed at businesses, industrial sites, public sector buildings, community groups, and registered charities operating in Great Britain.

Participants who met the eligibility criteria and registered their installation with Ofgem could receive tariff payments, usually on a quarterly basis, for a set period after accreditation. Payments were linked to the amount of eligible renewable heat generated and were calculated using tariff rates that varied by technology and installation size.

The scheme closed to new non-domestic applications on 31 March 2021, but existing participants continue under their original accreditation terms. Ongoing compliance obligations, metering duties, and audit requirements still apply to anyone receiving payments, which is why understanding the framework remains relevant for many organisations today.

Key steps

  1. Check whether your installation is already accredited. If your organisation is receiving RHI payments, confirm the accreditation details held by Ofgem, including the technology type, capacity, tariff band, and accreditation date. This information sets the rules you must continue to follow for the remainder of your payment period.
  2. Understand your ongoing obligations. Accredited participants must keep the system well maintained, use only eligible fuels where relevant, and ensure the heat generated is used for an eligible purpose. Breaching these conditions can lead to reduced payments, suspension, or recovery of sums already paid.
  3. Keep accurate meter readings and records. Most non-domestic installations rely on heat meters to calculate payments. You need to submit readings on time, keep fuel purchase records for biomass systems, and retain maintenance logs. Gaps in records are a common trigger for Ofgem queries and audits.
  4. Report changes promptly. If ownership changes, the system is modified, capacity increases, or the heat use changes, you must notify Ofgem. Failing to disclose a material change can jeopardise your accreditation and future payments, even where the underlying activity would still have qualified.
  5. Plan for the end of the tariff period and consider successor schemes. Tariff periods do not last forever. Think about what happens when payments end, whether replacement plant will be needed, and whether newer schemes such as the Boiler Upgrade Scheme or other support for low-carbon heat may be relevant for any further installations.

Common questions

If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Common questions

Q Is the Renewable Heat Incentive still open to new applicants?
The Non-Domestic RHI closed to new applications on 31 March 2021, and the Domestic RHI closed to new applicants on 31 March 2022. Organisations already accredited before those closure dates continue to receive payments under their existing agreements. If you are planning a new installation, you will need to look at successor schemes rather than the RHI.
Q Which technologies were eligible under the non-domestic scheme?
Eligible technologies generally included biomass boilers, ground source heat pumps, air source heat pumps used in certain configurations, solar thermal collectors, deep geothermal, biomethane injection, and biogas combustion. Each category had its own technical standards, capacity limits, and tariff bands, so the rules that applied to one installation will not necessarily apply to another.
Q What happens if I miss a meter reading submission?
Missing a submission window can delay your next payment and, in some cases, lead to Ofgem requesting additional evidence before payments resume. Persistent issues may trigger a compliance review. If you realise a reading has been missed, contact Ofgem promptly and keep supporting records so the shortfall can be reconciled.
Q Do I need to tell Ofgem if my business is sold?
Yes. A change of ownership is a notifiable event, and the new owner usually needs to apply to have the accreditation transferred. If this is not handled properly, payments can be paused or stopped. It is worth confirming RHI status and transfer requirements early in any sale or restructuring process.
Q Can I lose my RHI payments after I have been accredited?
Payments can be reduced, suspended, or recovered if Ofgem finds that the scheme rules have been breached. Common reasons include inaccurate information at application, using ineligible fuel, poor metering, or changes to the installation that were not reported. The earlier a potential issue is raised, the more options there tend to be for resolving it.
Q How does the RHI interact with other grants or tax reliefs?
There are rules about combining RHI payments with other public support for the same installation, and receiving certain grants can affect tariff rates. Tax treatment of payments also depends on how your organisation is structured. Because the interactions can get technical, it is sensible to take tailored input before assuming a combination is allowed.
Q What should businesses installing new heat systems look at instead?
For new installations, organisations typically look at the Boiler Upgrade Scheme for eligible heat pump and biomass projects, the Green Gas Support Scheme for biomethane, and wider energy efficiency or decarbonisation funding. The right route depends on the technology, site, and sector, so it is worth comparing options before committing.
If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.