Economy Minister Dr Caoimhe Archibald has set out how the long-controversial Non-Domestic Renewable Heat Incentive (RHI) Scheme will finally be wound down. The Minister told MLAs that the Executive has now signed off on a “pathway” to closure, including a temporary tariff uplift to carry participants through the coming winter.
The announcement matters because it delivers on a core commitment in the 2020 New Decade, New Approach deal and seeks to draw a line under one of the most politically damaging episodes in recent Northern Ireland history. Around 1,700 businesses still rely on the payments; taxpayers, meanwhile, continue to foot the bill for a scheme whose original design was branded “calamitous” by the independent inquiry chaired by Sir Patrick Coghlin.
What Will Happen and When
Dr Archibald confirmed three immediate actions:
- Her department will draft and introduce the RHI (Closure of the Non-Domestic Scheme) Bill.
- A public consultation on the preferred closure arrangements and payment mechanism will be published “shortly”.
- Following consultation, secondary regulations will be brought to the Assembly to enact the closure.
While no dates were provided, the Minister described today’s statement as a “significant step forward for participants who joined the scheme in good faith”. She also emphasised the need to “safeguard the interests of the taxpayer”.
Winter Tariff Uplift Agreed
The Executive has approved a one-off tariff increase for the 2025–26 heating season. The measure is designed to cushion participants until the statutory shutdown takes full effect. The level of the uplift, its cost to the public purse and the criteria for eligibility have not yet been published.
“In providing this pathway toward closure, I must strike a fair and responsible balance,” the Minister said. That balance involves meeting legitimate expectations of businesses—many of which invested heavily in biomass boilers—while preventing any further budgetary overspend.
Outstanding Details
Several key questions remain unanswered:
- Exact timelines. The department has not indicated when the bill will be introduced, how long the consultation will run, or when payments will finally cease.
- Financial modelling. There is no estimate of the total cost of the winter uplift, nor clarity on whether additional Treasury approval is required.
- Compensation or buy-out terms. The statement makes no reference to potential lump-sum settlements—an option floated during previous debates.
- Replacement support. Businesses that still depend on biomass boilers have no indication of what, if anything, will replace the current subsidy once it ends.
Wider Context
The drive to close RHI sits within a bigger policy puzzle: how Northern Ireland will meet its legally binding net-zero target by 2050. The region’s Heat Strategy has yet to be finalised, and uptake of newer schemes such as the Boiler Upgrade Scheme lags behind Great Britain (Department for Energy Security and Net Zero statistics, 2024). It remains to be seen whether the ending of RHI will accelerate or complicate the transition to low-carbon heat in the commercial sector.
Moreover, the original RHI controversy eroded public trust in Stormont. Transparent handling of the closure—especially around compensation and value for money—will be critical to rebuilding confidence.
Questions Worth Asking
- How large will the winter tariff uplift be, and how will it be funded within the Department for the Economy’s existing budget?
- What safeguards will be in place to ensure a smooth transition for small rural businesses that still rely on RHI payments for viability?
- Will the forthcoming bill include provisions for compensation or a voluntary buy-out, and on what terms?
- How does the closure dovetail with Northern Ireland’s yet-to-be-published Heat Strategy and wider net-zero commitments?
- In light of the Coghlin Inquiry’s findings, what lessons from RHI’s governance failures are being embedded into future energy-support schemes?
Looking Ahead
Bringing the RHI saga to a close would remove a lingering thorn from Northern Ireland’s political landscape and free up officials to focus on a comprehensive, future-proofed heat policy. The critical milestones to watch are the publication of the consultation document and the introduction of the closure bill. Stakeholders—particularly small businesses facing another high-energy winter—may wish to engage early, scrutinise the tariff uplift details and press for clarity on what comes next.