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Author Topic: commercial RHI - change of use of heat? Change of premises address?  (Read 2318 times)
Ivan
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« on: December 20, 2014, 12:06:12 AM »

I cannot find the answers to these two questions, but it might be very relevant to the long-term viability of the scheme for some businesses:

1)If a business moved premises, would they be able to take the heating system with them and still claim RHI? Obviously this wouldn't be the case with FITs, but most businesses rent premises, and might need to relocate due to downsizing, upsizing or because the landlord has ordered them to leave. If they cannot move the RHI system (bearing in mind that often these are very specific heat-processes such as drying feedstocks, and not just general heating of buildings), then this is a major stumbling block to any company in rented premises.

2) If the business model changes over the years (as is often necessary to stay in business), and the original heat process is no longer required but a new process requiring heat can take over (eg growing flowers changes to growing vegetables (I assume this would be ok) OR growing vegetables to keeping animals warm. What are the limitations on change-of-use of heat? Is it irrelevant as long as it remains in the same building? Or does it have to remain materially very similar to the original heat use process?

I looked in the Ofgem non-domestic guide books, but couldn't find the answers in either.
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Ted
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« Reply #1 on: December 20, 2014, 10:59:40 AM »

https://www.ofgem.gov.uk/ofgem-publications/87882/guidancevolumetwo-august2014publication.pdf

Change of ownership is covered from p58. Relocation is allowed - see 11.12. OFGEM will review if the installation continues to be eligible.

Change of use may be allowed, subject to discussion and agreement with OFGEM that any new use remains eligible, on a case by case basis.

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Ivan
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« Reply #2 on: December 20, 2014, 12:30:51 PM »

Superb - thanks for that Ted. I think it's really useful information to highlight to businesses considering RHI
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