Following the announcement from BEIS regarding the Renewable Heat Incentive (RHI) extension for tariff guarantee projects due to COVID-19, Ofgem has shared an update with the latest information. Here is the summary of what was shared:
Extension of commissioning deadlines for current allocation of tariff guarantees (TGs)
This extension remains only subject to “properly made” Stage 1 applications that were submitted prior to 29 June 2020. Between the 20 July and 31 July, those with eligible applications will have received an email confirmation that their project has been granted the extended commissioning date of 31 March 2022. If you believe you are eligible for the extension but do not receive an email confirmation before 31 July 2020 then contact Ofgem immediately.
New allocation round of TG’s (TG3)
The 3rd allocation of TG’s has now been released from 20 July 2020. To be eligible for the 3rd allocation, participants will have to submit Stage 2 prior to the closure of the Non-Domestic RHI scheme on 31 March 2021. All plants commissioning after 31 March 2021 will have a payment period until 31 March 2041, in practice, this means that if you commission after 31 March 2021, you will not receive the full 20 years of RHI payment, but a reduced payment period down to a minimum of 19 years. All plants will have the flexibility to commission and submit Stage 3 information at any point from their expected commissioning date.
TG budget allocation
The budget set for the 3rd allocation of TG’s is categorically split up based on the technology type. This may cause specific budget pots to fill up quicker than others. If you are looking to proceed with a 3rd allocation TG, we are encouraging participants to do so as soon as possible.
If you would like to discuss this process or a specific project you have in mind, please contact us on 024 7669 8899 or email email@example.com.