The government published its response to the 29 November 2021 proposals to extend commissioning deadlines for existing Tariff Guarantee and extension applications under the non-domestic Renewable Heat Incentive (NDRHI) on 19 January 20221. The response was published to address the delays projects were suffering due to COVID-191.
The November 2021 proposals sought to extend TG2, TG3 and extension application deadlines for non-biomethane technologies by 12 months to 31 March 20231. The earlier consultation of 17 August 2020 had already introduced an extension for non-Tariff Guarantee projects on the NDRHI that were under development pre-17 August 20201. To be eligible, projects needed to demonstrate that resource had been invested in project development prior to 17 August 20201. In response to feedback, that extension was set at 12 months after the closure of the non-domestic RHI rather than the originally proposed 6 months1.
The 30 June 2020 government response recorded that most of the 15 responses were broadly supportive of the proposals, but they highlighted some concerns and recommendations1. The changes were intended to support businesses, many of which are SMEs and include manufacturers, installers, and project developers in the low carbon heating sector1.
On the domestic side, the government relaxed the 12 month rule in the domestic RHI regulations to mitigate the impact of COVID-191. The rule requires accreditation applications to be made within 12 months of the commissioning date of the renewable heating system; the change allowed installations with a commissioning date on or after 1 March 2019 to apply for accreditation until the scheme closed on 31 March 20221. The amending regulations came into force on 1 April 20211. The domestic RHI scheme closed on 31 March 2022, and its successor is the Boiler Upgrade Scheme1.
| Date | Change |
|---|---|
| 28 April 2020 | Notice of proposals, including extending the domestic RHI until 31 March 20221 |
| 30 June 2020 | Government response; most of 15 responses broadly supportive1 |
| 17 August 2020 | Extension for non-Tariff Guarantee NDRHI projects under development pre-17 August 20201 |
| 5 November 2020 | Extension set at 12 months after NDRHI closure, not the proposed 61 |
| 18 December 2020 | Increases to TG3 budget cap from 1 February 2021 and COVID Extension Application budget cap1 |
| 11 January 2021 | Government response to changes to the domestic RHI regulations1 |
| 1 April 2021 | Amending domestic RHI regulations come into force1 |
| 7 May 2021 | Increase to biomass and other technologies COVID extension application budget caps1 |
| 29 November 2021 | Proposal to extend TG2, TG3 and extension application deadlines by 12 months to 31 March 20231 |
| 19 January 2022 | Government response to the November 2021 proposals published1 |
| 31 March 2022 | Domestic RHI scheme closed1 |
Why it matters for households
The NDRHI changes concern non-domestic projects, so they do not alter payments to households that held domestic RHI accreditation. For homes, the relevant change was the relaxation of the 12 month rule, which allowed installations commissioned on or after 1 March 2019 to apply for accreditation until the domestic scheme closed on 31 March 20221. That mattered for households whose accreditation applications were delayed by COVID-related restrictions1. The domestic RHI has since closed, and the government has noted its successor, the Boiler Upgrade Scheme1. Households weighing a change of heating system now sit under different rules from those described here, and the regulation-policy hub sets out the current framework. The distinction between the domestic scheme and the Green Gas Levy is also relevant when comparing how low carbon heat is funded.
What happens next
The 29 November 2021 proposal sought to extend TG2, TG3 and extension application deadlines for non-biomethane technologies by 12 months to 31 March 20231. The government response to that proposal was published on 19 January 20221. The page does not state what further steps follow from that response, and no decision on the proposed 31 March 2023 deadline is reported in the material available1.