# The Renewable Heat Incentive Scheme (Closure) Regulations (Northern Ireland) 2026, Note: Explanatory note (This note is not part of the Regulations) These Regulations close the renewable heat incentive scheme established by the Renewable Heat Incentive Scheme Regulations (Northern Ireland) 2012 (S.R. 2012/396) (“the 2012 Regulations”). They convert existing eligible installations to a closure scheme providing annual closure payments for the remainder of their original tariff lifetimes. Part 1 contains standard introductory provisions, including that these Regulations expire on 31 December 2038. It also includes an overview clause. Part 2 sets out how existing accreditations under the 2012 Regulations are to be converted to closure accreditations. The Department must notify existing participants of its intention to convert their accreditation and of the relevant information it holds in respect of that accreditation (regulation 5). Participants must confirm or update that information (regulation 6). Following the notification and confirmation process, the Department must consider whether the installation is an eligible installation for the purposes of conversion. Eligibility for conversion does not depend on the level of recent activity or the receipt of recent payments under the 2012 Regulations; matters relating to activity or usage are addressed through post‑conversion compliance and inspection arrangements. Where the Department is satisfied that the installation is eligible and that the participant has complied with the notification requirements, it must convert the existing accreditation to a closure accreditation (regulation 7). Existing accreditations that are not converted are revoked (regulation 8). Regulation 9 defines the “conversion day” for each closure accredited installation. Part 3 covers the new annual closure payments to be paid by the Department for the remainder of the original payment period (regulation 10), subject to the submission of an annual declaration. It sets out how annual closure payments are calculated, including the approach for tariffs with one tier and for tariffs with two tiers (regulation 11), and how the load factor is determined (regulation 12), principally by reference to historic metered heat output for the period 2017 to 2019, with provision for revision in exceptional circumstances. Part 3 also provides for inflationary increases in tariffs (regulation 13), retains a cap on deemed heat production for certain biomass installations (regulation 14), and makes provision for pro‑rating of annual closure payments where a closure accreditation is revoked, or ownership of an installation is transferred (regulation 15). Where an installation operates below normal levels, banding rules apply which reduce payment (regulation 16). Part 4 contains two subdivisions. The first subdivision sets out the eligibility criteria for installations that may receive annual closure payments. Regulation 17 sets out the general eligibility criteria for installations and regulation 18 defines eligible purposes for which heat must be used. Regulations 19 to 21 make specific provision for installations generating heat from solid biomass, solar collectors and certain heat pumps. Regulation 22 makes provision about plants comprised of more than one plant, including circumstances in which component plants may be treated as a single plant for eligibility purposes. The second subdivision in Part 4 deals with continuity of eligibility. This governs circumstances where an installation is transferred to a new owner, it is moved to a new location, or it is completely replaced. Part 5 imposes ongoing obligations on closure participants. These include the duty to submit an annual declaration (regulation 26), general obligations relating to record‑keeping, maintenance and continuing compliance with eligibility criteria and any conditions of closure accreditation (regulation 27), duties to provide information on request (regulation 28) and duties to notify the Department of specified changes in circumstances that may affect eligibility or payment (regulation 29). Part 6 is concerned with enforcement. Regulation 30 sets out when a closure participant is to be treated as failing to comply with these Regulations. Regulations 31 to 33 provide for a graduated range of enforcement responses, including temporary withholding of annual closure payments pending investigation, suspension of payments, and permanent withholding or reduction of payments. Regulation 34 provides for revocation of closure accreditation in cases of material or repeated non‑compliance. Regulation 35 makes provision for recovery of overpayments, including by requiring repayment as a civil debt owed to the Department or by offsetting against future annual closure payments, and regulation 36 provides for the revocation of sanctions. Regulation 37 confers powers of inspection. Part 7 is concerned with administration of the scheme. Regulations 38 and 39 establish a right of review in relation to Departmental decisions, including provision for internal review by a person not involved in the original decision and for further independent review by a panel appointed by the Department. Provision is also made for participants to voluntarily withdraw from the scheme (regulation 40). Regulations 41 and 42 require the publication of guidance and certain aggregate information about the scheme, and regulation 43 concerns notices. Part 8 covers some standard final provisions. Regulation 44 makes savings consequent upon the revocation of the 2012 Regulations, enabling the completion of residual administrative matters—such as final periodic support payments and changes of ownership or location notified before commencement—under the 2012 Regulations for a limited transitional period. Regulation 45 makes savings consequent upon the expiry of these Regulations, ensuring that review rights continue to apply in respect of applications made before expiry. Regulation 46 revokes all Regulations establishing the old scheme. Schedule 1 sets out the applicable tariffs by reference to technology type and installation capacity. Schedule 2 specifies information that may be required, including in connection with changes in ownership, changes in location, and replacement of installations. An impact assessment has been produced for this Statutory Rule. --- Source: https://www.legislation.gov.uk/nidsr/2026/9780338026613/note (the official version) Page: https://openlegislation.uk/draft-renewable-heat-incentive-scheme-closure-regulations-northern-ireland-2026/note Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.