A six-month extension for certain Non-Domestic Renewable Heat Incentive (NDRHI) projects is to be granted by the government.
A 14-month extension has already been announced to the scheme, giving applicants more time to complete their projects to help mitigate the impacts of COVID-19 on meeting the predetermined commissioning deadlines set out by the current Tariff Guarantee (TG) scheme.
However, the Department for Business, Energy and Industrial Strategy (BEIS) said that a number of respondents to this initial change highlighted that there were existing non-TG eligible projects that would also likely struggle to apply for accreditation before the NDRHI closure deadline of 31 March 2021 due to COVID-19.
It is therefore bringing in a six-month extension for projects that have invested capital into project development but won’t be able to accredit to the scheme prior to its closure.
These projects will be able to submit a properly made full application for accreditation until 30 September 2021 so long as they submit an extension application during a window set to open in March 2021.
As part of this application, there will be an additional requirement for evidence that the applicant invested capital in the project prior to the announcement of the extension – which was published yesterday (17 August 2020) – in order to ensure that the measure is targeted at those most in need of aid as a result of COVID-19 related delays.
Bean Beanland, director of growth and external affairs at the Heat Pump Federation, said the government’s announcement is “very positive”, with the potential to allow a “significant number of heat pump projects, put on hold given the uncertain future of the RHI, to be brought back to life”.
It was announced in April that the Domestic Renewable Heat Incentive would be replaced by a new mechanism, the Clean Heat Grant, following its closure on 31 March 2022.
However, heat pump installations will also be eligible for the Green Homes Grants, with households able to claim vouchers of up to £5,000 to install one or more of the technologies available.