Biomass Financial Facts

How smart business and homeowners are profiting from biomass!


biomass financial cost

Do you own a domestic property that uses oil, LPG or electric for its main source of heating? If so then you stand to make a nice profit from switching to a biomass boiler through the RHI (Renewable Heat Incentive).
Do you own a commercial property, HMO, blocks of flats, or 2 or more domestic units that can share the same heat source? If so then you stand to make an absolute fortune if you choose to switch to a biomass fuelled heating system.
(RHI) – Biomass The RHI is a Government run scheme managed by OFGEM, providing a payment for renewable heat systems which includes biomass boilers, these payments are paid quarterly over 7 years.
Commercial Biomass customers can receive the (RHI) which are also received in quarterly payments but commercial is paid out over 20 years.
Commercial RHI biomass heating has the following eligibility criteria:

  • For boilers smaller than 45kW the equipment and the installer must be MCS accredited
  • The applicant must own the installation
  • The biomass boiler must be new
  • The installation should not have received any grants

RHI compliant heat meters are installed to measure the amount of heat being provided Commercial payments (tiered) Biomass -

  • up to 200kW 7.6p (for the first 1314 x boiler capacity) 2p/kWh thereafter
  • systems 200-1MW 5.1p (for the first 1314 x boiler capacity) 2.2p/kWh thereafter
  • systems over 1MW 2.0p

Biomass Boiler Savings

Based on a standard, 3 bedroom domestic property (Energy Saving Trust) Fuel replaced Expected saving Expected carbon dioxide saving:

  • Electricity £580 a year 7.5 tonnes a year
  • Oil £280 a year 4 tonnes a year
  • LPG £720 a year 3.5 tonnes a year
  • Coal £300 a year 7.5 tonnes a year
  • Gas £100 a year 3 tonnes a year

Biomass Boilers, Heat Pumps,Solar Thermal and Low Energy Lighting – are eligible for 100% first year allowance through the (ECA) Energy Scheme. All eligible products must be on the Energy Technologies List as published by DECC.
For more information call us on 01269 500388 or visit


The person applying for the RHI payments must be the owner of the system, no grants should have been used to purchase the boiler, the boiler must be brand new when installed and if under 45kW then the system MUST have been installed by an MCS accredited installer.

The bad news for is that log-fuelled stoves are definitely not eligible for RHI. The rules are as follows:
Subject to the air quality and fuel sustainability criteria set out below:
· Biomass-only boilers (covering all solid biomass, including logs and chips)
· Biomass pellet stoves with back boilers
MCS accredited boilers are not necessarily eligible for RHI so we suggest you consult your local Green Energy provider before making any large purchases.

The cost for boilers varies depending on the fuel choice; a typical 20kW (average size required for a three-bedroom semi-detached house) pellet boiler would cost around £5,000 - £14,000 installed, including the cost of the flue and commissioning. A manual log feed system of the same size would be slightly cheaper.
The cost of commercial biomass boilers varies massively due to the size difference, 48kW system for a farm or small factory could cost around £30k, but a 1MW+ huge system could cost over a £million, depending on make and model.

Payments will be made quarterly and are inflation linked (RPI), increasing annually for 20 years (commercial) / 7 years (domestic). The owner submits an application to OFGEM after commissioning and the payments will not start until OFGEM accredit the system. Payments are based on the output of the heat meter. For schemes over 200kW OFGEM will indicate at the design stage that a system will be eligible for approval.

Biomass Boiler Community

Dave Andrews

As a by product of our commercial processes we had a fair amount of waste wood and saw dust that we had to pay to dispose of. Now we use it to fuel our factories heating and have made £201,830 in profit!

Jack Huang

We had a biomass boiler in our home 3 years ago and have already recouped half the cost from the RHI payments, now we are looking at getting a large commercial biomass boiler installed to heat some rental units that we own.

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