The announcement by the Government that the deadline for eligible applications to the non-domestic Renewable Heat Incentive (NDRHI) is to be extended by six months is much welcomed – and sensible – given the impact of Covid-19 on businesses.
The programme is all about encouraging as many businesses and organisations as possible to switch from fossil fuels to renewable heat by offering financial incentives, so it would have been a major own goal to not have allowed more flexibility following months in lockdown.
Businesses simply haven’t had the time to make this a focus given all that has been going on, but this will hopefully provide a bit more time for those who had already started the process to prevent them missing out.
The scheme subsidizes the installation, fuel, and servicing costs of green energy systems, and provides quarterly payments for a 20-year period from the date of installation per kWh of heat produced.
It is important to stress that the move is only an extension for eligible no tariff guarantee projects which are already under development.
Businesses must now provide evidence that they have already commenced with projects no later than 31st March 2021, and then submit a full application by 30th September 2021.
The evidence that they can offer can include;
- A dated invoice for construction works relating to the installation
- A dated invoice for the commissioning of pre-build development work relating to the installation
- A dated application for planning permission
- A dated e-mail or letter evidencing that a project falls under permitted development and does not require planning permission
- A dated invoice or invoices for the purchase and installation of equipment relating to the installation
OFGEM publish a lot of guidance on their website but the 'fine print' of the RHI can be complicated and confusing.
With a 20 year income at stake, it is important to understand the full requirements of this scheme, and ensure the design and installation of equipment is built to last and easy to maintain.