Ireland Considers RHI Scheme

Irish Environment Minister, Denis Naughten TD has launched the final consultation on a Renewable Heat Incentive for Ireland to incentivise industrial and commercial heat users to switch to greener technologies that produce heat from renewable sources.

Inviting the public to provide feedback to his Department on the Design Options for the Scheme, Minister Naughten said: “This support scheme is aimed at incentivising a switch from fossil fuel based heating systems to renewable heating solutions, which will help Ireland meet its energy and climate change obligations, simultaneously.” The Minister added: “As a rural based TD, I am fully aware that farmers in the past have explored the potential market opportunities in the bioenergy space, and many have decided not to pursue this avenue until the market was more mature. As a demand side measure, the RHI will aim to give the bioenergy and biomass sector the market in renewable heat production that is needed to encourage farmers to take the next step. However, for this intervention to be successful it is critical that supply-side policies must be aligned with the demand-side measure that my Department is developing.”

The consultation sets out a series of questions on the detailed design of the scheme, seeking public feedback and suggestions on rules such as timing of support; how payments should be structured; how to deal with different unit size; what sustainability and efficiency criteria to adopt; and a number of other scheme criteria. Find out more at The closing date for receipt of submissions to the consultation is 3 March 2017.

The Minister added: “The overall RHI scheme will be designed so that it ensures value for money for the taxpayers who are being asked to pay the cost of the RHI subsidy.

“Therefore, the RHI I am proposing will have a budget cap mechanism and a mechanism to reduce the amount applicants get paid over time built in from the start – so the more you burn, the less you earn.”


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