Huge savings on the cost of fuel
Biomass boilers are much more efficient than traditional ways of heating a commercial property, that’s because biomass pellets have a higher calorific value than other energy sources, making a biomass boiler upwards of 90% efficient. This means that your biomass boiler doesn’t need to burn as much fuel to achieve the temperatures you need.
Biomass pellets are much cheaper to purchase too, coming in a penny cheaper per kw compared to Gas and over 7 pence cheaper than Electricity.
To put that into context, a medium sized office using 220kW boiler using 2,114 hours per year would pay the following:
- Biomass 220kW x 2,114 x 3.5p per kWh = £16,277.80
- Gas 220kW x 2,114 x 4.5p per kWh = £20,928.60
- Oil 220kW x 2,114 x 5.9p per kWh = £27,439.72
- LGP 220kW x 2,114 x 8.3p per kWh = £38,601.64
- Electricity 220kW x 2,114 x 10.9p per kWh = £50,693.72
Over a 20 year period the fuel cost of a commercial biomass boiler is around £93,000 cheaper to run than it’s closest competitor – Gas.
And you won’t be paid by the government to run a gas boiler!
Biomass District Heating System Case Study
We installed a Biomass District Heating System at an equestrian centre in Strathaven, Scotland. The owner will make over £252,500 in combined fuel savings and Commercial Renewable Heat Incentive payments over the next 20 years.
Find out how you can reduce your businesses heating bills with a Biomass Boiler
11 Reasons your business should install commercial biomass
- Significant reductions in your heating bills
- Generous income from heating your property from the Commercial Renewable Heat Incentive
- Future proof your heating costs for the next 20 years at least
- Increases the value of your property by making it more efficient
- Ideal installations for both new builds and existing premises
- High efficiencies converting up to 90% of energy into usable heat
- A carbon neutral alternative to fossil fuel systems
- Wood fuel releases the same amount of CO2 when burned as it has absorbed during its life
- Compliant with climate change act
- Drastically lower running costs
- Happier, warmer people in your building!
Small Commercial Biomass – less than 200kW
Tier 1 payment for the first 1,314 hours the boiler is running is 4.18 pence per kWh Tier 2 payment for all hours over the first 1,314 is 1.15 pence per kWh Example:
- Small holding farm with 150kW Biomass Boiler heating several properties
- 150kW (boiler size) x 1,314 (hours) x 4.18 pence per kWh (Tier 1) = £8,238.78
- 150kW (boiler size) x 800 (estimated additional hours needed) x 1.15 pence per kWh (Tier 2) = £1,380.00
- Therefore the first year payment would be £9,618.78.
- Over 20 years the total payments are £192,375.60 – that’s not even allowing for inflation or taking fuel savings into account.
Figures are correct as of 09 September 2015.
Medium Commercial Biomass – 201kW to 1MW
Tier 1 payment for the first 1,314 hours the boiler is running is 5.18 pence per kWh Tier 2 payment for all hours over the first 1,314 is 2.24 pence per kWh Example:
- Medium office building with 220kW Biomass Boiler heating several properties
- 220kW (boiler size) x 1,314 (hours) x 5.18 pence per kWh (Tier 1) = £14,974.34
- 220kW (boiler size) x 800 (estimated additional hours needed) x 2.24 pence per kWh (Tier 2) = £3942.40
- Therefore the first year payment would be £18,916.74
- Over 20 years the total payments are £378,334.80 before taking fuel savings and inflation into account.
Commercial biomass installs are ideal for:
- Farms and agricultural businesses
- Holiday homes, where more than one property is being heated (this is known as a district heating system)
- Community groups
- Housing associations
- Commercial business premises
What constitutes a commercial biomass install?
The criteria to qualify for a commercial biomass system is pretty straightforward. If you are installing more than one Biomass Boiler or heating more than once property or you are a registered business and the Biomass system is to heat your business premises, you’ll qualify for the UK Government’s Commercial Renewable Heat Incentive payments.
Commercial RHI Payments for Biomass
Unlike the domestic RHI scheme, the Commercial Renewable Heat Incentive pays out over a 20 year period, rather than seven. The payments are still tax free and index linked making this a great way for you to heat your commercial property. RHI payments for commercial biomass installs are split into tiers dependent on the size of boiler required. Commercial Biomass Boilers are all fitted with a meter which measures the kWh of energy generated by the system. The reading from this meter helps to calculate the commercial RHI payment you’ll receive. For more information on RHI for a Commercial Biomass install visit the ofgem website.