The government has announced an extension to commissioning deadlines for all Tariff Guarantee projects to the 31 March 2022 and introducing a flexible 3rd allocation of Tariff Guarantees in a response to the Renewable Heat Incentive (RHI) consolation.
Extension of commissioning deadlines for projects
All projects that submitted a “properly made” Stage 1 Tariff Guarantee prior to 29 June 2020 will have an extension to 31 March 2022 to install. They will be subject to the final payment period being 31 March 2041 if commissioned after 31 March 2021 (commissioning and applying prior to 31 March 2021 will see participants receive the full 20 years of RHI support).
Introducing a flexible 3rd allocation of Tariff Guarantees (TG3)
To get on the 3rd allocation (expected to open 20 July 2020) participants will have to submit Stage 2 (financial close) prior to the closure on the 31 March 2021 of the Non-Domestic RHI scheme. All plants commissioning after 31 March 2021 will have a payment period until 31 March 2041. Those plants commissioning after 31 March 2021 will receive a reduced payment period relative to when a “properly made” Stage 3 application is submitted.
All plants will have the flexibility to commission and submit correct Stage 3 information at any point between their expected commissioning date and midnight 31 March 2022.
Tariff Guarantees submitted on or after 29 June 2020 and before TG3
Any Tariff Guarantee application made on or after 29 June 2020 to the new allocation (TG3 expected 20 July 2020) will be subject to the existing rules. Therefore, they must complete their installation by 31 January 2021.
The Non-Domestic RHI scheme is still scheduled to close to new applications on 31 March 2021.