Government announces extension to non-domestic RHI scheme due to coronavirus

The previous deadline of January 2021 for projects to be operational has been extended to March 2022, in order to help protect investment in the renewable heat industry

The UK Government has announced a 14-month extension for non-domestic Renewable Heat Incentive (RHI) scheme applicants to complete projects delayed by the coronavirus pandemic.

The move aims to help companies avoid missing the start-dates for their projects, protect investment in the renewable heat industry and provide certainty and security to workers in specialised supply chains.

The non-domestic RHI offers businesses a set tariff for 20 years for generating large-scale renewable heat for the energy grid – this can be achieved through a range of technologies including biomass boilers or heat pumps.

The previous deadline of January 2021 for projects to be operational has been extended to March 2022, following a response to the RHI consultation.

In addition to extending the second allocation of tariff guarantees, the government has also confirmed a third allocation will open in July.

Energy Minister Kwasi Kwarteng said: “It is right that we offer certainty and breathing space to companies embracing renewable heat technology across the country.

“Renewable heat will play a key role in the UK’s economic recovery as we redouble efforts to tackle carbon emissions. With government support, these vital projects are on course to stop 108 million tonnes of carbon dioxide from polluting the atmosphere, while also helping to create new green-collar jobs.”

A 12-month extension to the Domestic RHI, which will run until 31 March 2022, has also been announced – this is expected to avoid 1.2 million tonnes of carbon emissions through the retrofitting of 18,000 households with low carbon heating.

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