Biomass or Wood Pellet Boilers and the Domestic RHI
The Domestic RHI is probably the best thing ever to happen to energy-conscious homeowners.
It?s been a boon for kick-starting renewable heating adoption in UK homes, meaning cheaper energy bills forever, and freedom from reliance on the world?s oil and gas economy.
But naturally, this Government fund for homeowners won?t be around forever.
- Yes, you will always benefit from the low running costs and low carbon emissions if you install a biomass boiler
- Yes, the Domestic RHI scheme is still here, and paying out terrific sums to encourage homeowners to install Biomass (for businesses, see the non-domestic RHI (link)
- No, the payments from the RHI scheme won?t always be this high because it?s on a degression model.
Install Biomass now to get the highest pay out
Why is now the very best time to install a Biomass Boiler? Because the Renewable Heat Incentive (RHI) scheme is based on a degression model. Therefore, the more successful it is, and the more people install renewable heating in their homes and businesses, the less money the Government has to pay out as an incentive.
What?s the current Domestic RHI pay out for installing a Biomass Boiler?
If you install now, before 1 April, you will receive 10.98p per kilowatt hour guaranteed for the full 7 years of membership of the scheme. This will mean the cost of buying and installing your boiler will be recouped after 7 years, just from the RHI pay out. What you save on your fuel bills is a bonus! See how much customers are earning right now.
Biomass boiler pays for itself with the Renewable Heat Incentive.
|7 year Return||£25,200|
|Payback||5 years (18% return)|
|Bill Saving||£700 p.a.|
Return is calculated using combined bill savings and subsidy earnings. Bill savings are calculated using estimated energy usage and either the electricity price at the time of installation (1 April, 2014) or, for our heating products, the existing fuel type available to the property.
Biomass Boiler heats Devon house and swimming pool
|7 year Return||£28,000|
|Payback||9 years (11% return)|
|Carbon Offset||6,000 Kg p.a.|
Return is calculated using combined bill savings and subsidy earnings. Bill savings are calculated using estimated energy usage and either the electricity price at the time of installation (6 December, 2013) or, for our heating products, the existing fuel type available to the property.
Biomass Boiler for new build off the gas grid
|7 year Return||£15,400|
|Payback||7 years (14% return)|
|Carbon Offset||8,000 Kg p.a.|
Return is calculated using combined bill savings and subsidy earnings. Bill savings are calculated using estimated energy usage and either the electricity price at the time of installation (10 November, 2013) or, for our heating products, the existing fuel type available to the property.
When is the next degression, and what will the new RHI tariff be?
The degression occurs every 3 months. The next one will be announced at the end of February, and will take effect from 1 April 2015. We don?t know yet what the new rates for Biomass will be, but industry predictions are that the increasing popularity of biomass is likely to drive the incentive rates down.
Do I need to act now?
We will never pressure anyone into installing a Biomass Boiler! But we do want our customers to be aware of the value of early adoption.
If you?re considering Biomass, we urge you to take action NOW and get your Boiler installed before the 1 April degression.Call us on 0845 371 31 81
or find your local office
Common questions about Biomass installation
Our most frequently asked questions are all answered in this video of a biomass boiler installation carried out by EnergyMyWay. Watch this video.
To qualify for the higher tariff, what is the latest date I can submit my application to Ofgem?
Your Ofgem application can only be done once your boiler is up and running (and your EnergyMyWay installer will work with you to complete your application). So, the very last date you can submit your application is 31 March 2015, if you do it online.Call us on 0845 371 31 81
or find your local office