Public Consultation on the Closure of the Northern Ireland Non Domestic RHI Scheme 2025

Overview

The Northern Ireland (NI) Non-Domestic Renewable Heat Incentive (RHI) Scheme (“the Scheme”) was launched in 2012 with the aim of increasing the uptake of renewable heating technologies and contributing to a reduction of carbon emissions in businesses by subsidising the difference in cost between more expensive renewable heating systems and lower cost by less environmentally friendly fossil fuels.

The Scheme closed to new applicants in February 2016 following announcement by Jonathan Bell, the then Minister, that the Scheme represented “significant financial risk to the Northern Ireland block grant for the next 20 years.”

The Principal Regulations, which were made under section 113 of the Energy Act 2011, have been amended on several occasions to address concerns about the operation of the Scheme. A public consultation and a review of small and medium biomass was undertaken by Ricardo Energy and Environment (‘Ricardo’) in May 2018.

On 30 July 2024, the Minister for the Economy received Executive approval to close the Scheme. The Minister outlined to executive colleagues that this ‘would draw a line’ and set out arrangements for closure payments to existing participants.

Closure payments should be fair to participants and take into consideration the appropriate tariff payments that they would otherwise expect to receive. Closure payments should also be fair to taxpayers.

On 18th September 2025 an important milestone was reached when the Executive agreed a clear path forward to:

• Introduce the RHI (Closure of the Non-Domestic Scheme) Bill to the Assembly

• Complete a public consultation on the proposed closure arrangements

• Bring forward closure regulations; and

• Provide a temporary uplift in tariffs for eligible participants ahead of the upcoming winter period.

Why your views matter

Following consideration of all viable options this consultation seeks views on the Department’s proposed approach to Scheme closure.