Non-Domestic RHI Tariff Guarantee Amendments

Not Stansted Airport – BEIS HQ

This month BEIS has extended the Domestic Renewable Heat Incentive (DRHI) Scheme for an additional year until 31 March 2022 and introduced a 3rd flexible allocation of Tariff Guarantees on the Non-Domestic Renewable Heat Incentive Scheme (NDRHI). These legislative changes have been applied in order to address a number of concerns from the REA and industry on Covid-19 disruption.
 3rd allocation of Tariff Guarantees (TG) for NDRHI 

  • Under the announced 3rd allocation of Tariff Guarantees, plants will need to have submitted Stage 2 information evidencing financial close prior to the closure of the NDRHI on 31 March 2021.
  • This will then give plants until 31 March 2022 to submit Stage 3 commissioning evidence, under the standard Tariff Guarantee timeline. 
  • Under this new allocation, payments will begin from the point of commission and end 20 years after the properly made submission of a plant’s Stage 2 information.

Extension of Commissioning Deadlines for Projects Currently Holding a Tariff Guarantee to at least mid-March 2021

  • Currently projects with existing TGs under the 2nd allocation have a commissioning deadline of either 31 January 2021 or 183 days after the commissioning date stated to Ofgem in their application, whichever is earlier. The legislation that BEIS intends to bring forward would push all of these commissioning deadlines back to at least mid-March 2021. Click here for full announcement. 
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