A win-win scenario

3 minute read

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Unless you’re tanning under some glorious sunshine somewhere tropical, there’s just no mistaking that winter is well and truly here in the UK. Apart from wondering if the gritters will be out on your road, will the Ice Queen have wrapped her icy cold fingers around your car by the morning, will it be a white Christmas this year or will the infamous UK train service be running late or at all, there is another age-old question that sparks debate in most households this time of the year.

Should I turn the heating up?

So which will it be? Do you get your offices toasty and warm so everyone can turn up to work in their lovely floral tops and flip flops whilst imagining they’re in sunny Malibu or do you just put on another jumper?

What if I told you there was a third option? Turn the heat up and make money. It’s not a myth, believe me. That’s how it works when you’re talking biomass boilers.

Now for the facts behind it all. In one simple sentence, Climate Change Act 2008 ultimately sets a goal to reduce carbon emissions by 80% in 2050. In response to this, the UK government has set aside funds called Renewable Heat Incentive (RHI) for those who use renewable heat. RHI is the world’s first long-term financial programme aimed at supporting the use of renewable heat in commercial and domestic properties.

With a domestic installations, RHI is paid on a quarterly basis for seven years, and 20 years for a commercial installation. These quarterly payments are made depending on kilowatt per hour used. This basically translates to: you get paid for using more heat; not to mention your fuel cost savings. How has everyone not jumped on this win-win opportunity?

Treco has a number of successful installations that are already receiving RHI payments which coincidentally includes the biomass boiler installed at our offices.

Another perfect example is one of our recent case studies, Menchine Poultry Farm. Our customer didn’t only want to reduce his heating bills, but he also wanted to establish a drier environment in six purpose-built sheds for his livestock of approximately 36,000 free range birds.

Treco installed the boiler, fuel delivery system, agitator, buffer tank, heat main, and also replaced the internal LPG heater units in the sheds. The total project cost was £300,000 but with a fuel cost savings of 50%-80% and RHI payments of £46,252, the payback period for this project would be about five to six years. This basically translates to mean that after the RHI payments had covered the installation costs, the customer will earn close to £650,000 during the lifetime of his RHI payments. This does not even include his fuel cost savings.

Now I realise not every project is the size of Mechine Poultry Farm and not everyone will receive RHI payments as large as £46,252, but let’s face it when the government gives away money (which isn’t very often at all), surely it’s worth grabbing it by the pellets?

If you would like to know more about RHI or see a working installation, just contact our offices to have a chat or leave your details and we'll ring you back.

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