Renewable heat incentive

Maximise your energy savings and reduce energy bills

The Renewable Heat Incentive is a government backed incentive scheme run by Ofgem which sees money paid direct to the end user for every kWh of heat delivered into their premises from a Biomass system.  This, as a general rule of thumb, equates to approximately £1,000 per year for every 10kW of biomass boiler installed.

The Renewable Heat Incentive scheme is index linked and guaranteed for 20 years.

There is of course the additional financial benefit of switching from a fossil fuel burning system such as oil (6.4p kWh) to woodchip (3p kWh)

“Money is paid direct to the end-user for every kWh of heat delivered to their premises from a biomass system”

Here are your options:

Option 1 – Do Nothing

You can expect to see at least a 20% increase in your energy bills over the next 20 years

Option 2 – Purchase a Biomass Energy System

Tariffs for new installations from 1 April 2014 are:

  • Small biomass (less than 200kWth) Tier 1: 8.8p/kWh, Tier 2: 2.3p/kWh
  • Medium biomass (200kWth < 1,000 kWth) Tier 5.1p/kWh, Tier 2: 2.p/kWh
  • Large biomass (1MWth +) 1p/kWth

This generation tariff is paid over a 20 year period and aims to give a 12% return on capital and is index linked.

Each year you will receive the higher tier 1 tariff for the first 1,314 peak load hours, and the lower tier 2 tariff after that.

Option 3 – Fully Financed Biomass Energy System

With no initial outlay cost you get a system that can cover the majority of the finance costs and generates an income over the next 20 years.

Option 4 – Joint System

With no initial outlay cost you get a system that is installed for free and which you can utilize the clean, green energy. However Energy Gain UK receive the FIT payments.


4 Easy Steps

Initial Assessment

Assess basic economics and site suitability

Detailed Feasibility

Assess heat demands and heat profile

Determine size and plant design

Determine fuel availability, type, source, price and quantities

Assess permits and consents required

Provide economic appraisal


Apply for permits and consents

Prepare system specification

Apply for grants/finance


Commissioning and training

Operation and Maintenance

Establish ongoing maintenance regime

Ongoing performance monitoring