Then perhaps it’s time to turn up the heat and save the planet!
In a world where we all need to reduce our dependence on fixed carbon fuel sources such as oil and gas, it’s good to have viable options that are greener, cleaner to live with and give a guaranteed financial return thanks to the Governments Renewable Heat Incentive or RHI.
There are various types of renewable technologies eligible to receive RHI payments however the technology best suited to replace existing fossil fuel boilers is wood burning Biomass Boilers. They work in a similar way to traditional boilers but instead of burning fossil fuels such as gas or oil they burn wood in the form of logs, chip or pellets and are fully automated.
What are the benefits of Biomass Boilers?
- Guaranteed index linked RHI payments of 8.6p/kWh against energy produced
- Substantial savings over existing fossil fuels, especially LPG and heating oil (up to 50%)
- Qualify for Enhanced Capital Allowances – 100% of the cost can be written off against that year’s profits
- Up to 90% finance available from major Banks
- Replace existing fossil fuel boiler
- Improved performance and reduced energy usage
- Carbon Neutral – reduced carbon footprint and climate change levy
- Properly managed forests reduce CO₂ and create local employment
- Whilst the capital cost of biomass boilers can be higher the RHI payment addresses this and typical return on capex is 3-7 years depending on heat usage.
What is RHI?
The Renewable Heat Incentive (RHI) is a Government initiative set up by the Department of Energy and Climate Change (DECC) and operated by Ofgem to encourage the commercial uptake of renewable heat systems.
Why are the Government doing this?
In order to meet the legally binding reductions to the UK’s greenhouse gas emissions established in The Climate Change Act of 2008:
- Reduction of emissions to 25% below the 1990 level by 2017
- 15% of all energy consumed to come from renewables by 2020
- Or the UK will pay substantial penalties under the European Renewable Energy Directive (RED).
How does RHI benefit my business?
- Guaranteed returns on investment (typical capital repayment 3-7 years)
- Payments are indexed linked to inflation (increased 3.1% April 2013)
- For boilers 190kW and under pays 8.6p per kWh for the first 1314 hours per year = £21,471
- The scheme is guaranteed for 20 years.
In summary biomass boilers offer an environmentally sound, heating solution. Burning biomass, such as wood pellets or logs, emits the same amount of carbon dioxide as is absorbed while the plants were growing so biomass is classed as carbon-neutral/renewable energy.
Biomass boilers burn biomass fuels and efficiently extract energy to provide heating and hot water. They can also be more cost effective and efficient than fossil fuel boilers and together with the RHI incentives can provide you with a significant income for your business.
Why wait? Investigate installing a biomass boiler today.