Described as a ‘boost for renewable heat projects as government confirms tariff extension’, the reality of the extension is only applicable to those in receipt of tariff guarantees or to those that apply for a tariff guarantee and are able to provide evidence of Stage 2 Financial Close before March 2021, earning the applicant one extra year – until 31st March 2022 – in which to get the installation work completed. The deadline of March 2021 however remains for all other applicants to the Non Domestic RHI.

Experts at the Kensa Group have been quick to identify the announcement has been widely miss-reported as an extension to the Non Domestic RHI scheme (which remains due to close in March 2021), leading to widespread confusion.

David Broom, sales director of Kensa Contracting comments: “Miss-interpretation of the Government’s announcement has understandably led to clients wrongly assuming the Non Domestic RHI has been extended, and thus taking the pressure off applications. The truth is the Non Domestic RHI has not been extended – the extension only applies to tariff guarantees, which will not be applicable to the majority of our clients due to tariff guarantees eligibility criteria for projects in excess of 100kW capacity; many social housing schemes will fall below this threshold.

Karl Drage, director of business development at the Kensa Group comments: “A follow-on scheme to the RHI is an opportunity to ensure that the transition to renewable heat is appropriate, cost effective and achieves the aims of getting closer to net zero across the building stock. Government led schemes, to date, have failed to make significant progress, and this is a critical time on the path to 2050.'