THE Ulster Farmers’ Union (UFU) has given a cautious welcome to the Northern Ireland Executive’s plans to close the Non-Domestic Renewable Heat Incentive (RHI) Scheme.
The scheme, which has been mired in controversy for nearly a decade, will be wound down with a new tariff structure intended to deliver fairer payments to participants.
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It is thought that close to 900 poultry units were part of the scheme.
The Department for the Economy (DfE) said an eight-week consultation on the proposals will begin shortly, with a new annual payment model due to be in place by April 2026, when Ofgem steps back from its administrative role.
UFU deputy president John McLenaghan said the Executive’s decision was a long-awaited step forward.
“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,” he said.
‘The right move’
He added that rejecting the tariffs proposed in late 2024 had been “the right move”, and welcomed a “much more realistic” uplift based on historic usage from 2017–2019.
McLenaghan noted that more than £100 million in renewable heat funding has gone unspent since 2020 due to delays in resolving the issue.
“Now that a path forward has been agreed, we must work collaboratively with DfE and the wider industry to develop new, fit-for-purpose renewable schemes that support and provide certainty for participants,” he said.
The UFU has confirmed it will respond to the consultation and is urging its members to take part.
