Biomass Incentives for Business 


Why should you use biomass for your business? a biomass boiler can produce enough energy to provide central heating and hot water for your business, in place of a gas or other boiler, and with the RHI in place the more you burn the more you earn, so no need to cut back on your heating and hot water anymore. On top of that, it’s an excellent alternative to costly fossil fuels. Coupled with low energy costs and excellent financial returns from the commercial RHI, Biomass is a leading renewable source of heat. Biomass can be applied from small offices to large factories.

Biomass benefits for Business

  • Installing biomass gives A saving of £3,240 against annual fuel bill
  • An earning of £11,926 per annum, index linked for 20 years
  • £15,166 or 23.6% return on a typical investments
  • £100 spent on oil becomes £68 spent on wood pellets £100 spent on LPG becomes
  • £55 spent on wood pellets
  • £100 spent on electricity becomes £21 spent on wood pellets
  • Funding available from EST at low interest rate over a five to eight year period and repayment will be covered by return on RHI
  • RHI payment is returning 8.3p per kilowatt but is being reviewed every 3 month, so the more time you waste the money you lose
  • EST funding can be interest-free and repayable over up to 8 years

Potential incentive by using Biomass
Potential Savings

Biomass Boilers System Performance

Boiler running hours are estimated at 1,500 hours per annum.

Renewable Heat Incentive earnings are therefore projected to be:

  • Tier 1: 1314 hrs @ 70 kW = 91,980 kWh x 8.3p = £7,634.34
  • Tier 2: 1,500 – 1314 hrs =186 hrs @ 70 kW = 13,020 kWh; 13,020 kWh x 2.1p =£273.42
  • Total £ 7,634.34 + £273.42 = £7,907.76 per annum earned in RHI
  • Fossil fuel costs avoided (2011-12 figures) = £5,040 per annum saved
  • Wood pellet cost incurred = £4,410 per annum cost

The nett annual benefit is therefore

£ (6,173.40 + 5,040) – 4,410 = £8,537.76

The return on capital deployed is 8,537.76 / 40,200 = 21.2 %

Note: RHI is payable for 20 years and is index-linked to annual RPI. All figures are prepared with our best care but will vary according to season, climate and commodity values, and are based upon historical data provided by external sources, so must be regarded as indicative only.

With our professional accredited installation teams we are leading the way in the future of biomass.