In addition to using cheaper biomass fuel there is a current incentive called the Renewable Heat Premium Payment. This is a UK Government scheme designed to help you afford your biomass heating solution and will provide £950 towards the cost of your biomass boiler. In return, you will be asked to submit information about how the technology you have installed is performing in its environment.
The Renewable Heat Premium Payment scheme will run from 1 August 2011 – 31 March 2012.
People who have installed their biomass heating solution under the Premium Payments scheme will also be eligible for support through the Renewable Heat Incentive providing they meet the eligibility criteria of the full RHI scheme, as will anybody else who has installed eligible equipment since 15 July 2009.
All Bioheat heating solutions are MCS accredited and therefore qualify for the Renewable Heat Incentive due to be released for domestic customers in October 2012, when the government will pay you for each kw heat you produce over a 20 year period. This means a typical return on investment for your Bioheat Heating Solution of 12%.
The Renewable Heat Incentive (RHI)
In order to meet energy targets of 15% of all energy consumed by renewable by 2020, the UK Government has introduced the Renewable Heat Incentive (RHI) - the first of its kind in the world. This is now live for non domestic installations and will be implemented for domestic installations from October 2012. However, all compliant installations since 2009 will be eligible to enter the RHI when it is available.
The RHI is a guaranteed 20 year payment, for every unit of heat generated by your biomass boiler. So not only are you saving money on your heating bills by using a lower cost fuel, you will be paid for being green as well. The tariff table will be reviewed by the Government, who will decide if the tariff levels need to be changed. The first review will take place in 2012.
| Tarriff Name |
Eligible Technology | Eligible Size kW nominal output |
Tariff Rate (pence/kWh) |
Duration (years) |
Support Calculation |
| Small biomass |
Solid Biomass (inc. wood chip, wood pellet and wood logs) |
up to 199kW | Tier 1: 7.9 Tier 2: 2.0 |
20 | Metered: Tier 1 applies annually up to tier break. Metered: Tier 2 above the tier break. The tier break is 1,314hr x installed capacity (kW) |
| Medium biomass |
Solid Biomass (inc. wood chip, wood pellet and wood logs) |
200kW to 999kW | Tier 1: 4.9 Tier 2: 2.0 |
20 | Metered: Tier 1 applies annually up to tier break. Metered: Tier 2 above the tier break. The tier break is 1,314hr x installed capacity (kW) |
| Large biomass |
Solid Biomass (inc. wood chip, wood pellet and wood logs) |
1000kW and above | 1 | 20 | Metering |
RHI payments are based on metered heat over a 20 year period. Good optimum performance design and quality equipment are therefore essential to maximise your returns.
All Bioheat boilers are MCS accredited, ensuring that they are compliant with the RHI guidelines.
How to apply for accreditation and support
Accreditation for the RHI can be obtained from Ofgem, who are responsible for administering the scheme. Ofgem opened their doors for applications on Monday 28th November 2011, for industrial, commercial, public sector, not-for-profit and community installations.
Information on how to apply for support, plus detailed guidance documentation to help you through the process, can be found on Ofgem's website. If you need any further information, please do not hestitate to contact Bioheat or follow the following links
RHI for non domestic, commercial installations
RHI for domestic installations
Alternatively you can contact their enquiries centre on 0845 200 2122 or by email to rhi.enquiry@ofgem.gov.uk.