The scandal around the scheme ultimately led to the collapse of the Executive between 2017 and 2020
The long-running Non-Domestic Renewable Heat Incentive (RHI) scheme will be formally closed by April 2026, Economy Minister Caoimhe Archibald has announced.
The scandal around the scheme ultimately led to the collapse of the Executive between 2017 and 2020. Addressing the Assembly on Monday, Dr Archibald confirmed that the Executive has approved a pathway for closure, alongside a tariff uplift this winter to support participants.
She told MLAs: “I am pleased to confirm that the Executive has now agreed a pathway to deliver the closure of the RHI Scheme. A tariff up-lift has also been agreed for this coming winter to support Scheme participants as work to implement closure is progressed.
“Today marks a significant step forward for participants who joined the Scheme in good faith and sets out a clear path to fulfilling the New Decade, New Approach commitment to close the RHI scheme. In providing this pathway toward closure, I must strike a fair and responsible balance — recognising the genuine expectations of those participants who entered the Scheme in good faith, while safeguarding the interests of the taxpayer.”
The Minister said her department will launch an eight-week consultation on closure arrangements before bringing forward legislation to confirm the department’s powers. Regulations setting out the final terms are expected to be put to the Assembly by December, with the new system in place by April 2026.
Closure payments will be based on heat usage between 2017 and 2019, rather than future metered readings. Compensation will be spread over 10 years for most participants, with payments to stop if installations are no longer in use.
Dr Archibald said this approach “frees up my Department to engage with Treasury on a scheme which could utilise approximately £10m per annum of AME funding for alternative use” once RHI has ended.
The Renewable Heat Association of Northern Ireland, which represents many of the scheme’s participants, described the announcement as an important step after years of uncertainty.
In a statement, the group said: “The Renewable Heat Association welcomes the Minister’s commitment to tackling the RHI issues arising from the 2019 legislation, now recognised by all parties as having unintended negative consequences, and the proposed immediate in-year tariff uplift. This is the first step towards a fair conclusion to the issues and must be seen as progress following six years of paralysis.”
The Association also stressed the role renewable heating could play in helping Northern Ireland meet its statutory climate targets, pointing out that heating accounts for half of the region’s fossil fuel use. It urged members to engage with the forthcoming consultation.
Around 1,200 small businesses invested in the RHI scheme, which was originally assessed as having the potential to cut carbon emissions by 125,000 tonnes a year. Many have long argued they were left bearing additional costs after support was reduced in 2019.
Dr Archibald told MLAs it was “long past time” the scheme was closed, with Ofgem due to step away from administering it in 2026. “Closure of the RHI scheme will allow my Department to focus efforts on developing alternative support measures,” she said.
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