News that the long-awaited Renewable Heat Incentive (RHI) scheme will finally get off the ground is a positive step that could benefit many agricultural businesses, the NFU said today.

The Department for Energy and Climate Change (DECC) has announced that the project will start accepting applications from Monday November 28. This follows the revised RHI Regulations passing through Parliament after the scheme’s compatibility with EU state aid rules was resolved. The original launch planned for September 30 was postponed at only 12 hours’ notice.

The RHI is intended to revolutionise the way heat is generated and used in Britain and is the first scheme of its type in the world. Many other countries are watching the UK closely to evaluate its success and determine whether it can be replicated elsewhere.

It has been designed to sit alongside incentives for renewable electricity and transport fuels, enabling the UK to meet its European obligations by 2020 under the Renewable Energy Directive. 

NFU chief renewable energy and climate change adviser Dr Jonathan Scurlock said: “Many farmers and growers expecting to benefit from supplying heat using biomass boilers, solar water heating and ground source heat pumps were left feeling very discouraged by the repeated delays. But they will be pleased that, at last, this scheme is finally getting off the ground.

“The RHI was intended to stimulate the market for renewable heating, but previous hold-ups and lack of detailed information had resulted in potential customers putting off important buying decisions, while investor confidence has been dented.

“The NFU believes that this is a bold initiative which could be of particular benefit in rural areas with a limited choice of heating fuels. We will continue to work with the Government and other stakeholders to improve and refine the RHI over time.”