Costs and Funding Available

money

With the decision to introduce a tariff to encourage carbon neutral heating the economics of biomass heating has changed dramatically. The Renewable Heating Incentive (RHI), to be introduced in April 2011, will provide a tariff for every kW of heat produced by a biomass system and once details are clarified Rural Energy will be in a position to help define the exact benefit for any application.

Meanwhile various grants are available to help with the initial investment for installation of biomass heating equipment. When coupled with RHI, it will be unusual to find a case where the investment in Biomass is unfavourable.

The Rural Energy Association (www.r-e-a.net) is able to advise clients on the most appropriate sources of funding and complete applications as required.

Capital Grants

Bio-Energy Capital Grant Scheme
  • Capital grants paid to wood-energy companies who successfully bid for funding from the DTI. Up to 25% grant available.

Big Lottery Fund

Regional Development Agencies
  • RDAs may support wood-heating projects. Rural Energy can advise

Englands Regional Development Agencies

Rural Enterprise Scheme (DEFRA)
  • DEFRA can fund a wood-heating system as part of a wider rural diversification project

DEFRA

Bio-Energy Infrastructure Scheme (DEFRA)
  • Grants for setting up wood-fuel producer groups and capital grants for specialist equipment for the fuel-supply chain
  • Applicants awaiting results, including East Midlands Wood Fuels Ltd

DEFRA

Low Carbon Buildings Programme
  • The DTI’s Low carbon buildings programme will provide grants for microgeneration technologies for householders, community organisations, schools, the public sector and businesses.
  • Microgeneration is the stand alone generation of low carbon heat and/or electricity which for example, could be through biomass

LCBP

Other Incentives

Climate Change Levy
  • Wood fuel is exempt from the CCL

DEFRA

Enhanced Capital Allowances
  • 100% of the cost of an approved wood-heating system can be offset against tax in the first year – useful for profitable companies

ECA