STOP PRESS: Changes to Non-Domestic RHI Support and Covid-19 Response.

Nigel A-F

The Department for Business, Energy and Industrial Strategy (BEIS) have announced another 6-month extension to the qualification deadline for the Non-Domestic Renewable Heat Incentive (NDRHI) for smaller projects not eligible for a tariff guarantee (TG).

‘Smaller’ includes any biomass project less than 1MW and any ground source heat pump project less than 100kW.

This means that in essence most projects will now have an extra year to be commissioned, i.e. until 31st March 2022: larger projects by means of applying for a TG; smaller projects by means of the deadline extension just announced.

The other recent news is that the TG budget headroom for large GSHPs has been heavily over-subscribed this year and is now full. This means that if an application was received by Ofgem before 6th November this year but has not yet been processed by Ofgem then it will be in a queue and there is still a chance that it will be allocated a TG from the existing. However, if not submitted by 6th November then at the moment there is no budget headroom left: the option remains to submit the application for a TG and it will be put in the queue. If more budget is allocated at some stage in the next few months then the post 6th November applications may yet be successful: it all depends on more money being allocated. (Naturally we continue to lobby BEIS for that to happen).

All these recent changes to deadlines have been introduced to try to help projects survive in spite of delays caused by Covid-19. But it’s complicated and there are procedural hurdles to jump.

The table below summarises the various permutations for the two most common renewable heat technologies under development in schools:

Tech/Capacity Eligible for TG? TG In Place? Commissioning Deadline
GSHP @ 100kW & above Yes Yes As per existing TG letter received from Ofgem

Probably 31st March 2022 but if not contact ReEnergise or your existing consultant for advice.

No Depends:

If applied before 6 Nov 2020 then your application will be in a queue and you may be allocated a TG shortly.

If not yet applied or did so post 6 Nov 2020 then that application will only be successful if more budget headroom allocated by BEIS.

Biomass @ 1MW & above Yes Yes Deadline is as per existing TG letter received from Ofgem

Probably 31st March 2022 but if not contact ReEnergise or your existing consultant for advice.

No Depends:

Apply by 31st March 2021 to secure a TG plus an extension to commissioning deadline until 31st March 2022.

If no TG secured then commissioning deadline remains the original RHI deadline of 31st March 2021.

GSHP below 100kW and biomass below 1MW No, but now eligible for a deadline extension Depends:

If project was in development before 17th August this year, the deadline can be extended to 31st March 2022 by applying for an extension. The extension application must be submitted during March 2021.

If the project was not in development before 17th August this year then commissioning deadline remains the original RHI deadline of 31st March 2021.

If you’re in any doubt please contact ReEnergise for further advice; or your own consultant if you already have one.

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