The Ulster Farmers’ Union (UFU) has cautiously welcomed the Northern Ireland Executive’s announcement on the closure of the non-domestic Renewable Heat Incentive (RHI) Scheme. The UFU said it was broadly supportive of the proposed plan which seeks to provide a fair solution to a long-standing issue.
UFU deputy president John McLenaghan said, “We are pleased to see the Northern Ireland Executive uniting and delivering on the commitment made in the ‘New Decade, New Approach’ agreement to fairly uplift the tariff for existing participants and close this scheme. We have been calling for a fair solution for some time, and it is positive that the Executive have now acted.”
The UFU deputy president noted that rejecting tariffs proposed in October/November 2024 was the ‘right move’.
“We are glad to see that the new proposed tariff uplift is much more realistic for our members, and we look forward to seeing the full details of the consultation. It’s important that this new annual payment model, based on historic usage from 2017-2019, provides the necessary support for businesses that still rely on their systems.”
McLenaghan added, “Over £100 million of funding for renewable heat has gone unspent since 2020 due to the lack of progress on this issue. Now that a path forward has been agreed, we must work collaboratively with the Department for the Economy and the wider industry to develop new, fit-for-purpose renewable schemes that supports and provides certainty for participants.”
The Department for the Economy (DfE) plans to launch an eight-week public consultation on the proposed closure model, with the new system expected to be in place by April 2026 when Ofgem’s administration role ends. The UFU will be responding to the consultation questions and encourages all members to engage with the process.