The Renewable Heat Incentive (RHI), a scheme to encourage more people to adopt renewables, will go ahead for non-domestic energy producers, although feed in-tariffs for biogas will be cut. image expired

The Department of Energy and Climate Change (DECC), yesterday revealed the RHI had received the go-ahead from the European Commission following revisions to the regulations of the scheme; the project was suspended last month just hours before it was due to be rolled out. However, the changes will mean tariffs for large-scale biomass will be cut by more than 60 per cent. If parliament approves the EC’s revisions, the scheme will now launch in late November.

A DECC spokesperson said, "We have now updated the RHI regulations to reflect the required change to large-scale biomass tariff by the European Commission. The large scale biomass tariff has been revised from 2.7 pence per kilowatt hour (KWh) to one pence per KWh. The regulations have been laid before Parliament, and subject to Parliamentary approval we hope to open the scheme before the end of November."

The industry has welcomed news that the RHI launch is imminent, though last month’s delay was met with anger. William Worsley, president of the Country Land and Business Association said UK farmers and landowners stood to lose out and ultimately blamed the DECC for the hiccough, "The announcement for RHI funding was made in the comprehensive spending review last October, so the UK government should have ironed out the wrinkles well in advance of the launch date."