Renewable Heat Incentive launch put back by DECC due to state aid complication.

30 Sept 2011

The launch of the Renewable Heat Incentive (RHI), as planned for today, has been put on hold due to the large biomass tariff being subject to a reduction before it can gain European Commission state aid approval.

In a frustrating turn of events for the industry, we were notified last night that the scheme is to be put off. A statement from the Dept of Energy and Climate Change reads: ”We are fully committed to introducing the Renewable Heat Incentive. However, we understand that the European Commission state aid approval for the RHI will be subject to a reduction in the large biomass tariff.  We expect to receive written confirmation of this very shortly. This means we now need to change the regulations before the scheme can open to applications.  We understand this is frustrating for industry who are already gearing up for the RHI however we hope to get this sorted out soon and open the scheme before the end of November.”

The RHI is designed to encourage the uptake of renewable heat technologies, such as solar hot water, in order to help meet the UKs steep emission reduction targets for 2020 and 2050. The first phase, initially due to start today, is aimed at the commercial, industrial and public sector, which make up 38% of UK carbon emissions. Phase 2, due to begin in October 2012, targets domestic properties. DECC is yet to release full details of the second phase of the scheme. 

Any enquiries about eligibility or applying for the scheme are to be directed towards Ofgem. Either call 0845 200 2122 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Meanwhile, the Renewable Heat Premium Payment scheme for domestic properties is still available and unaffected.