Treco Featured in H&V News
added october 3rd 2011
Biomass boilers buck trends with growth potential
Growing awareness of the reliability of biomass technology, environmental issues, rising fossil fuel costs, government support for renewable energy is stimulating growth in the biomass boiler market. Anticipation of the Renewable Heat Incentive, which will start to pay eligible biomass boiler owners for generating green heat, and its launch in October is already creating increased new interest and fuelling further demand.
Tens of thousands of new biomass boiler installations are expected over the next few years, which will mean job creation across the whole renewable energy supply chain.
Phase one of the RHI is due to begin in October this year, when OFGEM’s website will be open for eligible biomass boilers to be registered. It will accept quarterly meter readings from November, which will determine the units of green heat generated and the quarterly payments that will follow, every year, for 20 years.
In the domestic sector, the Renewable Heat Premium Payment scheme runs until April next year. This offers one-off grants of up to £950 towards the cost of a biomass boiler and is a precursor to the domestic scheme in phase two. Due to launch in October next year, the RHI’s second phase will offer landlords and homeowners generous incentives for green heat generated by single boilers serving an individual property.
Phase one of the RHI will be particularly beneficial to farmers, rural businesses and landowners, National Trust and listed properties replacing fossil fuel systems in stately homes and tenanted properties. Churches, doctor’s surgeries, leisure centres, schools, village halls, zoos, care homes and hospitals will also benefit, as will housing developers, social enterprises, community heating schemes and social housing providers.
Their associated fossil fuel usage may be high because of a need to provide continuous heat to larger buildings, often around the clock. Where multiple properties are heated by a single boiler under “district heating” schemes, the anticipated RHI payments will be particularly appealing.
Many of the buildings above are off the mains gas network and those who’s heating usage can mean that they make some of the biggest savings by moving away from expensive and polluting fossil fuels.
The anticipated RHI payments alone can mean a 4-6 year payback on the capital cost of a commissioned project and there is growing support available from the banks. For example, Barclays Bank recently launched a £100m fund for British farmers, hoping to cut energy bills and generate new sources of income from investing in renewable energy.
Biomass boilers under 45kW must be Microgeneration Certification Scheme accredited and fitted by an accredited installer to qualify for RHI payments.
The national shortage of qualified biomass fitters is an opportunity for the plumbers and heating engineers needed for the tens of thousands of new boiler installations that the RHI will create.