Government extends tariff guarantee scheme to support businesses affected by Covid-19

Companies who applied to the Government’s tariff guarantee scheme will have an additional 14 months to get their energy-efficient operations “up and running”, it has been confirmed.

Applicants to the second allocation of the Non-domestic Renewable Heat Incentive scheme had a project deadline of January 2021 to install low-carbon heat generators or risk missing out on payments.

However, the extension means that businesses affected by Covid-19 have until March 2022 to go green.

Under the scheme, businesses and not-for-profit organisations could apply to receive quarterly payments over 20 years based on the amount of heat they generate from renewable sources, such as biomass, solar, and biomethane and gas.

Commenting on the extension, Energy Minister Kwasi Kwarteng said: “It is right that we offer certainty and breathing space to companies embracing renewable heat technology across the country.

“Renewable heat will play a key role in the UK’s economic recovery as we redouble efforts to tackle carbon emissions. With government support, these vital projects are on course to stop 108 million tonnes of CO2 from polluting the atmosphere, while also helping to create new green collar jobs.”

The Government has also announced this week that the third allocation of tariff guarantees will open to new applicants from July.

To find out more about the Non-domestic Renewable Heat Incentive scheme, please click here.

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