Non-domestic Renewable Heat Incentive (RHI) scheme applicants have been granted a 14-month extension from the government to complete projects delayed by the coronavirus pandemic.
The move aims to protect investment in the renewable heat industry, provide certainty and security to workers in related supply chains and help companies avoid missing scheduled start-dates for their projects,
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.”