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End of UK Non-Domestic RHI could derail net-zero targets

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The UK Government’s plan to end the Non-Domestic Renewable Heat Incentive (RHI) this month will leave manufacturers without a financially viable green alternative to generate heat for many crucial industrial processes, according to biomass installation specialist NerG.

Ending the non-domestic RHI could force businesses to seek out cheaper, non-renewable sources of energy. Luke Worrall, business development manager NerG, explains why this move will harm the UK’s efforts to reach net-zero carbon emissions by 2050 unless policy gaps are addressed.

On 11 March 2020, in his budget speech, the Chancellor announced the government would be extending the Domestic RHI scheme into 2022, and that it would introduce a third allocation of Tariff Guarantees for the Non-Domestic RHI scheme, with the latter scheme ultimately coming to an end on 31 March.

The subsequent closure consultation by the government was met with ‘mixed views’ from environmental groups. The Association for Renewable Energy & Clean Technology (REA) said while the move to enable biomethane projects to claim payments from both the RHI and the...

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