The Non-Domestic Renewable Heat Incentive (NDRHI) scheme was launched in Great Britain in 2011 as a part of government efforts to reduce carbon emissions in the non-domestic sector. The NDRHI supports businesses, the public sector, and non-profit organisations to install renewable and low-carbon technologies for space, water and industrial process heating. By paying tariffs to participants for the generation of renewable or low-carbon heat and the injection of green gas into the gas grid, the scheme provides financial incentives for the uptake of low-carbon heat technologies.
The Non-Domestic Renewable Heat Incentive annual report provides an update on NDRHI scheme activity during Scheme Year 13 (SY13), covering the period 1 April 2023 to 31 March 2024. The report outlines details on applications and accreditations under the scheme, payments made to participants, and the low carbon heat produced by accredited installations. It also provides an overview of our monitoring compliance activity, which works to guard the scheme from fraud and error, and our broader administration of the scheme.
Please note: For those who wish to look at the data used in the report in more detail, a spreadsheet with this information is published alongside the report below.
104.9 TWh of heat has been generated under the scheme to date - with 78.1 TWh from heat generating installations and the equivalent of 26.8 TWh from the 2.5 billion m3 of biomethane injected into the gas grid.
The 15.3 TWh of heat generated in SY13 is enough to heat over 1.3 million typical UK homes for a year.
£5.94 billion in payments have been made since the start of the scheme, with £930.1 million of this being paid in SY13.
With 440 accreditations granted in SY13, the total number of installations accredited on the scheme increased to 22,812 - bringing the total accredited capacity to 6,090 MW
The two most common technologies accredited on the scheme are solid biomass boilers and ground source heat pumps, accounting for 76.5% and 12.3% of installations respectively.
At least 34% of heating systems installed on the NDRHI scheme replaced fossil fuel (oil, gas or coal) heating systems. Please note that not all systems installed were replacing an existing heating system.
We monitor scheme compliance to ensure that payments are only made to those eligible to receive support, and reserve the right to pursue compliance and enforcement action when participants fail to comply with scheme rules.
In SY13, we closed 972 compliance investigations where we protected or expect to recover nearly £5 million of public funds.
Through our debt recovery processes, we recovered a total of £1.46 million in SY13, originating from erroneous payments made in various scheme years.