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Janet Richardson

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Nov 06, 2023

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How much do Biomass and Pellet boilers Cost

An automatically fed pellet boiler for the average home will cost between £14,000 and £19,000 including installation, flue, fuel store and VAT at 5%. A log boiler on average will cost between £11,000 and £23,000 and an individual pellet stove abound £4,000 - £4,500. Fuel costs may vary dramatically but will generally cost less per kilo depending on the size of the order. So the larger fuel store you have, generally the more you will save over time. A website set up to help biomass system owners find fuel suppliers in their area can be found by clicking here. Biomass boilers are not cheap and can cost up to three or four times more than a standard fossil fuel boiler. Nonetheless, the total cost of biomass systems varies between types, manufacturers and installers. The table below gives you a rough idea of the costs of buying and installing a biomass boiler system, including parts (boiler, buffer tank, flue) and installation, as well as VAT at 5%.

System type System size Approx. system installation cost
Semi-automated log boiler 15kW £7000 - £10,000
Semi-automated log boiler 25kW £10,000 - £15,000
Fully automated pellet boiler 15kW £10,000 - £15,000
Fully automated pellet boiler 25kW £15,000 - £20,000


These costs are for small and medium scale biomass systems for homes and businesses. For example, a standard 3-bedroom home’s energy requirements would be fulfilled by a 15kW system. Installation costs of larger biomass systems vary massively and can be comparatively much higher than those of smaller systems, especially considering many such systems require some degree of building work. The Carbon Trust website has a number of case studies which detail the total cost for renewable energy installations in a range of organisations. A school in Scotland, for example, installed a 400kW biomass heating system which came to a total cost of around £624,000 (of which £112,000 was spent on the boiler itself). 

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Other Funding Sources for Biomass Boilers

In response to the growing concerns over climate change and the need to transition to more sustainable energy sources, the United Kingdom has been actively promoting the adoption of biomass and wood pellet boilers for residential and commercial use. The UK government recognizes the potential of these renewable technologies in reducing carbon emissions and has introduced various financial incentives to encourage their installation. This section explores the current financial incentives for biomass and wood pellet boilers in the UK, with a particular focus on the BUS boiler upgrade scheme.

Before delving into the BUS boiler upgrade scheme, it's essential to acknowledge the Domestic Renewable Heat Incentive (RHI). Although we won't provide details here, it is worth noting that the RHI was previously a significant financial incentive for renewable heat technologies, including biomass boilers. However, the RHI was closed to new applicants in 2021.

The BUS boiler upgrade scheme is one of the current financial incentives offered by the UK government to encourage the uptake of biomass and wood pellet boilers. This initiative aims to replace older and inefficient fossil fuel boilers with greener alternatives.

Under the scheme, eligible applicants can receive financial support to replace their existing fossil fuel boilers with biomass or wood pellet boilers. The government subsidy assists with the initial installation costs, making the transition to renewable heating systems more accessible and financially viable for homeowners and businesses alike.

Key Benefits of the BUS Boiler Upgrade Scheme:

  • The BUS scheme offers several benefits that attract individuals and organizations to switch to biomass and wood pellet boilers:
  • Reduced Carbon Footprint: Biomass and wood pellet boilers are considered low-carbon heating solutions, contributing significantly less CO2 emissions compared to traditional fossil fuel boilers. By promoting these technologies, the UK aims to decrease its carbon footprint and achieve its climate goals.
  • Cost Savings: Although the initial investment in biomass and wood pellet boilers may be higher than traditional boilers, the reduced operating costs over time can lead to considerable savings on energy bills. The BUS scheme subsidy helps to offset the higher upfront costs.
  • Energy Security: By encouraging the use of sustainable biomass fuel sources, the UK enhances its energy security by reducing reliance on imported fossil fuels.

Details on applying for the BUS scheme, including eligibility criteria, grant amounts, and application procedures, can be found on the official government website or through authorized scheme administrators.
Conclusion:
The UK's commitment to promoting renewable energy solutions has resulted in a range of financial incentives for biomass and wood pellet boilers. The BUS boiler upgrade scheme, in particular, stands as a significant effort to transition away from fossil fuels and reduce greenhouse gas emissions. By taking advantage of these incentives, homeowners and businesses can embrace sustainable heating options, contributing to a greener and more sustainable future for the UK.
 

Finance Options for Biomass Boilers

There are a number of companies offering finance for biomass boilers in the United Kingdom. Finance, in the form of loans and leasing agreements, is available for domestic, commercial and industrial installations, in both the private and public sectors. Finance for renewable energy technologies allows customers to avoid large upfront costs and make payments out of the income earned from government schemes such as the Renewable Heat Incentive, as well as energy bill savings.

Finance may be offered on a range of bases, each offering varying levels of financial risk and reward, as well as varying interest rates. Typically the finance company will provide the renewable heat technology and its installation in return for payments spread over a period of time. Depending on the type of agreement, the client may either come to own the technology at the end of the period, it may be sold by the company with the proceeds being split between client and company, or the finance company could retain it.

The arrangements offered by finance companies will vary, however, and each will offer different advice. It is therefore advisable to obtain quotes and agreement terms from a range of companies, based on your energy/heating needs and financial situation.

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