The government has announced that from October 1 the Renewable Heat Incentive tier 1 tariff for non-domestic installations will remain at the current level of 5.18 pence per kWh for boiler installations over 200 kW. The tariff will drop slightly for installations less than 200 kW to 4.18 pence per kWh. The RHI means that biomass heat continues to be a very attractive proposition for businesses considering the replacement of fossil fuel boilers or for those looking to install a completely new heating system.
In recent months Asgard Biomass has installed several biomass boilers for companies that are now taking advantage of the RHI. Companies may be moving to new premises that requires an upgrade to the heating system, or an old oil or gas boilers in an existing building needs replacing, or there becomes an increased heat demand due to business expansion.
Regardless of the reason, once a financial analysis is undertaken then the real benefits of biomass become clear. The small and medium tariff rates continue to be verybeneficial; for example a 220 kW wood pellet installation replacing gas can see a 5 year payback and generate a 22% IRR. A 50 kW wood chip installation can generate a 17% IRR and pay back in 7 years.
Call the Asgard Biomass office on 01767 262470 for more details