The proposed Renewable Heat Incentive addresses key objectives set out in the National Mitigation Plan, the Energy White Paper and the Programme for Government. The scheme has a significant role to play in contributing to meeting our renewable energy and emission reduction targets for 2020 and beyond. In addition, the scheme will open up new opportunities for the domestic bioenergy sector.
The development of the scheme has involved detailed economic analysis, extensive engagement with industry and two public consultations. The scheme is designed to stimulate and support the replacement of fossil fuel heating systems with renewable energy by commercial, industrial and agricultural heat users in the non-emissions trading sector (non-ETS).
In Budget 2018, €7m was allocated for the proposed Renewable Heat Incentive which will fund the first phase of the RHI scheme, which I expect to commence in 2018 subject to Government and State Aid approval.