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Biomass - Economics

The following installation costs are for guidance only:

Domestic Systems 
Systems vary considerably depending on choice of biomass product (Log or Pellet), choice of brand, size of property (75 - 300 square metres) and its heat loss, and the complexity of an installation. Prices for Log and Pellet systems typically range from £12,000 for smaller homes to £32,000 for larger homes / more complex installations.

Commercial Systems
Commercial buildings, their complexity and heat losses will vary greatly. System prices are typically:

£600 - £1,000 per kW of output

Currently, wood pellet is approximately 30% less expensive than oil. Wood chips and logs also generally costing less than most fossil fuels to buy. The greatest savings are made through fueling chip and log boilers by harvesting direct from woodland which makes then an especially popular choice with landowners and farmers.

The Renewable Heat Incentive is already operating for non-domestic installations and is scheduled to open for domestic applications in Spring 2014. Ofgem are administering both schemes and tariffs are payable for 20 years (non-domestic) and 7 years (domestic). RHI non-domestic tariffs are explained to the right, and RHI domestic tariffs are 12.2 pence per kWh..

Commercial Installations
 are index linked for 20 years from the date of installation.
Less than
200 kW
Tier 1 rate = 4.18 pence per kWh
up to the threshold*
Less than
200 kW
Tier 2 rate = 1.11 pence per kWh
over the threshold
From 200 kW
to 1000 kW
Tier 1 rate = 5.18 pence per kWh
up to the threshold

From 200 kW
to 1000 kW

Tier 2 rate = 2.24 pence per kWh
over 1 threshold

* The Tier 1 threshold is the boiler capacity (kW) multiplied by 1314 (hours)

In the event of a complaint you can follow the RECC complaints procedure. Simply click on the RECC logo above to view.

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