Archibald confirms formal closure of Non-Domestic RHI Scheme

Speaking in the Assembly today, Minister Archibald updated members on the next steps in relation to the closure of the scheme.

The Minister said: “I am pleased to confirm that the Executive has now agreed a pathway to deliver the closure of the RHI Scheme. A tariff up-lift has also been agreed for this coming winter to support Scheme participants as work to implement closure is progressed.

“Today marks a significant step forward for participants who joined the scheme in good faith and sets out a clear path to fulfilling the New Decade, New Approach commitment to close the RHI scheme. In providing this pathway toward closure, I must strike a fair and responsible balance — recognising the genuine expectations of those participants who entered the scheme in good faith, while safeguarding the interests of the taxpayer.”

Highlighting the next steps, the Minister added: “My Department will now: prepare and take forward the introduction of the RHI (Closure of the Non-Domestic Scheme) Bill; publish a public consultation on the preferred closure arrangements and payment mechanism; and following this consultation; introduce the regulations to the Assembly.”

The Renewable Heat Association has welcomed the Minister’s commitment to tackling the RHI issues arising from the 2019 legislation, now recognised by all parties as having unintended negative consequences, and the proposed immediate in-year tariff uplift.

The Association said this is the first step towards a fair conclusion to the issues and must be seen as progress following six years of paralysis.

The statement continued: “Heating in Northern Ireland accounts for 50% of our fossil fuel use. A credible, sustainable, renewable energy policy must contribute to the achievement of the Climate Change statutory objectives and emissions reductions - which must be delivered. Bioenergy is a proven renewable heating option - one which is especially applicable to the rural environment in Northern Ireland.

"1,200 small businesses made significant capital investments to be accredited to the Scheme and have for the last six years, borne, unsupported, the additional costs of green energy over fossil fuels. It was previously assessed that the Scheme had the potential to contribute a 7% reduction in carbon emissions, and then independently assessed at 125,000 tonnes of carbon per annum: a significant contribution towards the ambitious statutory emissions reduction targets for 2030.

"Having engaged in good faith with the previous three public consultations on the future of RHI, the Association will engage with the proposed 4th Public Consultation. We encourage our members and all stakeholders to do likewise.”