The REA has responded to the BEIS Stakeholder Notice on “Changes to RHI Support and Covid-19 Response”.

In summary, the REA’s response emphasises the following points:

• The REA welcomes the intention to extend the Domestic Renewable Heat Incentive scheme until 31 March 2022, as announced in the Spring Statement.

• The REA is pleased to see the extension to commissioning deadlines for projects currently holding a Tariff Guarantee (2-TG), and the introduction of the third allocation of flexible tariff guarantees (3-TG) under the non-domestic RHI scheme.  However, we note that there remains uncertainty around how these extensions will work, particularly concerning the interaction between 2-TG and 3-TG. Urgent clarification on these mechanisms is required to allow developers the ability to plan and complete their projects.

• The REA, however, strongly oppose the decision not to extend the Non-Domestic RHI in line with the Domestic scheme. Projects that are not eligible for Tariff Guarantees have not been provided mitigation against COVID-19 delays. The decision also creates a twelve-month gap of no support between the end of the scheme and the start of the proposed Clean Heat Grant Scheme. This is despite underspend within the allocated RHI Budget. Smaller and medium scale non-domestic heat projects now face a cliff edge resulting in viable heat decarbonisation projects being abandoned. This will undermine the potential for growth, damaging the established heat decarbonisation sector ahead of any a new scheme being introduced.

The REA call on that BEIS re-consider this decision so that existing projects can be completed, as well as provide a smooth transition to the future support for low carbon heat which is also currently being consulted on.

Members may read the full response by signing in and using the below link to download the response.

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