Renewable Heat Incentive Delayed

However, DECC announced yesterday that the launch of the RHI has been delayed for the near future, due to changes in tariff rates.

For the scheme to go ahead, state aid approval is required. The European Commission has expressed its concerns regarding the tariff for large biomass systems – believing it to be too high. DECC expect to gain approval from the European Commission, once a reduction is made to the tariff for large biomass.

The alteration to the biomass tariff will mean that the RHI regulations will need to be amended and passed through Parliament for approval. The scheme will not launch until this process has been completed.

The DECC has expressed understanding of the frustration surrounding this delay from industries who were all set to make applications for the RHI.

It is hoped that the RHI will be launched before the end of November 2011, when applications will be able to be received and processed.

http://www.decc.gov.uk/en/content/cms/meeting_energy/Renewable_ener/incentive/incentive.aspx

http://www.ofgem.gov.uk/e-serve/RHI/Pages/RHI.aspx