Biomass for SMEs

Biomass is a leading, effective source of renewable heat and a biomass boiler can produce enough energy to meet all of a business’s central heating and hot water needs. With the financial incentive offered by the government for the non-domestic sector to install ‘green’ heating technology, installing a biomass boiler also makes good business sense.

Businesses installing renewable energy technology currently qualify for the government’s Renewable Heat Incentive (RHI) scheme. The RHI scheme is being implemented by Ofgem and businesses should apply directly. Once accepted and accredited on the scheme index-linked payments are made every three months for up to 20 years. The amount payable depends on the heat output of the system installed.

For example, a small commercial biomass installation of less than 200kWth will earn 8.6 pence per kWhth (rate from 1 April 2013). With these figures in mind, it is well worth signing up to the scheme and businesses that do not take advantage of RHI may well find themselves funding the scheme by taxes added to their energy bills.

Apart from the benefits afforded by the RHI scheme, there are other good reasons for businesses to consider installing a biomass boiler; biomass is much less expensive than fossil fuels and companies will be seen by clients and shareholders to be engaging with renewable energy technologies. 

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