A Government-backed renewable energy scheme is back on track after a delayed start, much to the relief of businesses across the region which were geared up for the original September launch of the Renewable Heat Incentive (RHI) scheme.

The RHI scheme – through which payments are available to support the generation of energy from a range of eligible heat technologies – was put on-hold just days before its original launch so the Government could review the rates paid to producers of a range of renewable technologies.

The RHI scheme will have a phased introduction and this first phase focuses on the non-domestic sector to support eligible renewable heating technology schemes across a range of commercial or industrial premises or which are in use in the public or the not-for-profit sector.

Carter Jonas, whose energy team has its headquarters in the firm’s Peterborough office, says the RHI scheme could benefit those operating farmhouse and cottage or farmhouse and office set-ups, holiday cottages, rural offices and even, stately homes as well as the more obvious commercial and industrial premises.

This phase of the RHI provides an attractive annual payment, spread across 20 years, that is linked to the Retail Price Index (RPI), giving rise to up to a 20 per cent return on capital by some calculations.

Renewable heat technologies eligible for funding under this first RHI phase include biomass, municipal solid waste (CHP), ground and water source heat pumps among others. But, according to Carter Jonas, by far the main interest in RHI eligible schemes is coming from the rural sector in connection with commercial biomass boiler schemes.

Iain Nott, senior associate at Carter Jonas in Peterborough, says that following the review period, it is a relief that there are no substantial changes to the original scheme and so no impediment to those who were considering the benefits of the RHI scheme before the delay. He says: “Given the recent climate of uncertainty that has surrounded renewable energy schemes such as the Feed-in-Tariff (FiT), it’s reassuring to see the RHI scheme coming on-stream again.

“The RHI presents a significant opportunity for rural and also some urban businesses and eligible premises to generate income from their non-core activity.

“Those with obvious and perhaps not so obvious commercial interests who want to develop a qualifying renewable energy scheme have an imperative to seek expert advice sooner rather than later now that the RHI scheme is back on track once more.”

• PHOTOGRAPH SHOWS: Iain Nott