Funding for your biomass boiler

Capital Funding

Where required, many of our clients source capital finance through their existing bank or other lender, most of whom are now very familiar with Biomass investment and have their own experts in this area.

Energy Innovations is able to assist by providing investment appraisals and returns modelling for individual projects, in support of finance applications.

Energy Innovations constantly reviews any financial grants and government incentives available to our clients.

Renewable Heat Incentive (RHI)

The major financial incentive available to non-domestic and domestic clients is the Renewable Heat Incentive (RHI).

RHI is leading the UK’s wider programme encouraging the use of renewable technology for heat generation. The scheme typically offers an 8-15% return on investment in addition to the savings made from the change in fuel cost.

We have successfully claimed numerous grants for our clients over the years, helping them to cover the capital cost of their biomass installation more quickly.  Energy Innovations can assist either with the initial application only,  or can provide an ongoing service which includes the submission of regular meter readings to Ofgem on the client’s behalf.

Download our helpful guide to the Renewable Heat Incentive (RHI)

Click for RHI Update

Non-Domestic RHI

System requirements:

  • The system must be new.
  • The system should be installed and commissioned after 15th July 2009.
  • The system must serve a new or existing justifiable heat requirement.
  • If the boiler has an output of 45kW or below it must be installed by an MCS accredited installer.

The scheme is based on the following 20 year tariffs, which will be linked to the Retail Price Index, paid quarterly and based on metered heat.

Tariff Name Eligible Technology Eligible Sizes Tier Tariff (pence/ kWhth) –
20th Sept. 2017
Small commercial biomass Solid biomass including solid biomass  contained in waste. <200kW Tier 1 3.05
Tier 2 2.14
Medium Commercial Biomass 200kW to 999kW Tier 1 3.05
Tier 2 2.14
Large Commercial Biomass >1MW Tier 1

Tier 2



CHP Biomass All Capacities All 4.42

** Tier 2 applies to the kWhs left after Tier 1 Break.* Tier 1 applies annually up to the Tier Break (installed capacity x 1,314 hours, i.e. boiler size x 1,314)

Installed capacity = 240kW
Energy used per annum = 360,000 kWh
Tier 1 Allowance = 240 x 1 314 = 315,360kWh
315,360 x Tier 1 Tariff = RHI
plus Tier 2 Allowance = 360,000 – 315,360 = 44,640 kWh
44,640 x Tier 2 Tariff =RHI

Tier 1 + Tier 2 = Total RHI income per annum

 Domestic RHI

System Requirements:

  • The system must not exceed an output of 45kW. However, domestic properties seeking more than 45kW output are able to have multiple biomass units up to a net rated output of 70kW.
  • The system must be installed by an MCS accredited installer.

The domestic tariff is based on a deemed amount which will need to be obtained from an EPC Certificate.
The scheme is based on the following 7 year tariff.


Tariff Name Eligible Technology Eligible Sizes Tier Tariff (pence/ kWhth) – from 1.1.2018
Domestic Biomass Solid biomass <45 kW Tier 1 6.74


Contract for Difference (CfD) – Electricity Generators

Contract for Difference has replaced Renewable Obligations Certificates (ROCs) for generators of low carbon electricity. It gives greater certainty and stability of revenues to electricity generators by reducing their exposure to volatile wholesale prices. Energy Innovations is able to give guidance on, and assist with, your CfD application.