RHI scheme delayed hours before launch - 03/10/2011

Business energy users hoping to adopt eco-friendly measures may be concerned to hear the launch of the government's planned Renewable Heat Incentive (RHI) has been delayed.

The scheme, which intends to provide firms and individuals with help to install green energy measures such as biomass, air source heat pumps and solar thermal technology, was supposed to open for applications from non-domestic customers on Friday (September 30th).

However, the Department of Energy and Climate Change has confirmed this will be postponed until further notice due to worries raised by the European Commission (EC).

It stated the EC brought up concerns that the large biomass tariffs to be offered are too high and will only provide the necessary financial aid to the project if this is reduced.

This will require amendments to the RHI regulations that will need to be approved by parliament, which means the process of accepting applications cannot begin at this time.

A further announcement regarding the revised timetable will be made once written confirmation from the EC has been received.

"We are committed to launching the scheme as soon as possible to minimise disruption to stakeholders," the department stated.

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