Ofgem Guidance for Non-Domestic Renewable Heat Incentive

Ofgem issued their guidance for how the Non-Domestic Renewable Heat Incentive is to be administered last Friday, and here’s all the information that you need to know.

For biomass the key guidelines are:

MCS certification requirements apply for installations less than or equal to 45kWth.

Must be specifically designed and installed to use solid biomass as its only primary fuel source.

A log via invoice of all fuel purchased must be kept. For wood harvested on a property a log must be kept. For installations below 45 kW the fuel “must not be contaminated” above 45 kW there is a 10% allowance.

They expect at lest one fuel hopper to be new.


Applications are made on a case by case basis. Ofgem are very keen not to support applications where fossil fuel can be burnt in place of biomass. In the applications it will need to be clear how the fuel source and equipment used will be dedicated to biomass especially under 45 kW.

Clearly wood pellet boilers have an advantage as:

  • The boilers can be dedicated to wood pellets
  • Wood pellets are made and to a standard so conformity can be shown.

Eligible Applications

Applications can be made by any non domestic property owner e.g. local council, school, bed and breakfast, hotel, office, etc.

The heating must be via hot water or steam and metered.

In addition the support is also for district heating systems. This is where more than one property is heated via the same boiler.

This is a grey area and there is an advice line to phone. However the following below is our understanding:

Will count for non domestic RHI
  • 2 domestic properties with one boiler
  • A hairdressing salon
  • A hotel
  • A bed and breakfast
  • Mixed use premises – e.g. offices and flats
  • A block of flats
Will not count
  • Landlord properties with individual boilers
  • Home office and domestic property

Evidence required will often come down to council tax banding or business rates. This is not exclusive, however the “mixed use” definition above is going to be difficult to interpret in cases where there are not clear definitions. e.g. Farm house and office – is it mixed use?

For further information please see the Ofgem Website or phone their enquiry line 0845 200 2122