On 7 October the Department for Energy and Climate Change announced that state aid approval had been granted by the European Commission for the Renewable Heat Incentive (RHI) for non-domestic generators.

For an overview of the RHI scheme, see our update Government Lights a Fire Under Renewable Heat from March this year. Full details of the scheme can be found here.

In the process of considering its approval the Commission expressed concerns that the large biomass tariff was set too high, and the approval is therefore subject to that tariff being reduced. As a result, there will be a delay to the launch of the RHI scheme while the draft Regulations implementing it are amended and re-submitted to the Parliamentary process.

DECC are estimating that the scheme can nonetheless be open before the end of November 2011.