Grants and Other Incentives

Grants are available for the installation of biomass heating equipment. The Rural Energy Trust 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.

www.biglotteryfund.org.uk

Regional Development Agencies

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

Rural Enterprise Scheme (DEFRA)

  • DEFRA can fund a wood-heating system as part of a wider rural diversification project

www.defra.gov.uk

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

www.defra.gov.uk

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

www.defra.gov.uk

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

www.eca.gov.uk