Renewable Heat Incentive and Biomass

The Renewable Heat Incentive is a government backed scheme to promote the use of renewable heating. For wood pellet installations the the scheme applies to any property and installation that meets the schemes criteria.

For all installations below 45kW this will mean at least:

MCS accredited wood pellet boilers

MCS accredited installations

If your installation was completed after July 2009 then you may be eligible.

The scheme is split into domestic and non domestic properties.

Non domestic properties are community, commercial, charity and government owned properties e.g. hotel, community centre, care home, or where the heating serves more than one property e.g. farm with out buildings.

The non domestic RHI was introduced on 28th November 2011.

The rate for small biomass is 8.6p per kWh for the first 1314 hours.

The tariff is calculated on metered heat and by the rating of the boiler.

Boiler rating e.g. 50 kW  X  1314 Hours X 8.6p = £5650.2 per annum for 20 years = £113,000

For a property that uses 30,000 kWhrs per year this would be £2580 per annum for 20 years ie £51,600 in total.

Ofgem have now issued their guidance for the scheme and our comment can be seen here

Eligible installations do include district heating for homes ie 2 or more domestic properties getting their heat from one boiler and for mixed use e.g. flats and offices receiving heat from one boiler.

You can make applications to Ofgem and you will be required to prove that you do qualify both in terms of your property being “non domestic” and your installation being suitable.

The Domestic Renewable Heat Incentive was introduced on April 9 2014. At the moment the scheme is for biomass boilers up to 45kW and MCS accredited. The published rates are 12.2p per kWh for 7 years

For a wood pellet boiler of 25kW this would mean payments of  £3285 per annum for 7 years or £22995 in total.

In addition you will need a Green Deal assessor to provide assurance that your home is sufficiently insulated and they also provide an EPC that then determines the amount that you get paid.

For further details see the  Ofgem site (https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive) on how to apply and precise details on the legislation surrounding the scheme.

Please get in contact if you are considering a biomass or solar thermal installation in your home and we can get back to you with advice and get to a proposal for a system.