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Non-Domestic Renewable Heat Incentive (NDRHI) scheme now finished

Viola Rossi • May 5, 2021

Ofgem's review of NDRHI

Important news concerning the closure of the Non-Domestic Renewable Heat Incentive (NDRHI) scheme.

The director of E-Serve Philippa Pickford has recently published an interesting blog issued by Ofgem April 2021 that outlines some of the scheme's key achievements and what seems to be the next future of low carbon heating

The Non-Domestic Renewable Heat Incentive (NDRHI) scheme, has been the first scheme of its kind in the world to support renewable heat generation when it launched in November 2011. Now, almost ten years after having provided enough renewable heat for everyone in the UK, with a population of 66.65 million, to take 175 hot baths (based on one bath requiring 5kWh), the NDRHI scheme has closed to new applicants.

Why the Non-Domestic Renewable Heat Incentive (NDRHI) scheme is important?

The NDRHI scheme has provided businesses across Great Britain the opportunity to reduce their environmental impact, by delivering subsidies to renewable heating systems such as biomass boilers, heat pumps, geothermal and solar thermal installations. Thanks to these subsidies biomass boilers and biogas production have grown, becoming common despite the initial price difference between low carbon and conventional heating systems. The NDRHI scheme has also contributed to significant carbon saving and supported the UK’s approach to tackling climate change.
 
What comes next? The future of low carbon heat.
 
While the NDRHI scheme has already made a substantial contribution to developing sustainable heat generation, the aim is to go further to drive down emissions from heating our homes and businesses. 

Ofgem is now working with the government on the development of two new green heating schemes which will build on the NDRHI scheme’s progress:

The Green Gas Support Scheme (GGSS) to be launched in Autumn 2021. This is intended to increase the proportion of green gas in the grid, decarbonising gas supply and continuing the transition to net zero. 
The Clean Heat Grant to be launched in Spring 2022. This is expected to help domestic and small commercial properties install primarily heat pumps, and in limited circumstances biomass systems, replacing high carbon fossil fuel heating.

Ofgem will give further information in due course, and request interested parties to check www.ofgem.gov.uk for updates and consultation arrangements.
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