|Turn key cost||£120 000||Chip||Pellet|
|Expected boiler life||25 years||25 years|
|Boiler output||190Kw||Yearly RHI payment||£20,721||£20,721|
|Estimated hours||1314||Fuel cost||£6,970||£10,756|
|Chip cost per tonne||£100||Annual fuel saving against oil||£11,005||£7,219|
|Pellet cost per tonne||£200||Payback period||3.8 years||4.3 years|
|Return on investment (ROI)||26%||23%|
|Total return over 20 years after payback||£514,520||£438,800|
Wood Pellet Fuel Cost Comparison.
A typical large office building might require 600,000 kWh of energy for heating and hot water per year. If we compare the cost of using wood pellets against other fuels, we can see that wood pellets are significantly cheaper than all other fuels with the exception of natural gas (based on equivalent boiler efficiencies).
|Product||Amount Required||Unit Cost||Annual Cost Incl. VAT||Cost per kWh|
|Wood Pellets||137 Tonnes||£180||£24,660||4.11p|
|Heating Oil||60,000 Litres||65p||£39,000||6.50p|
|Oil Fired Boiler||Gas Fired Boiler||Wood Pellet Boiler|
|Cost of Boiler||£15,000||£12,000||£100,000|
|Cost of Fuel (Over 20 year, based on today’s price)||£780,000||£445,320||£493,200|
|Total Cost (Over 20 years)||£795,000||£457,320||£73,200|
Please note that the final details and level of financial support on offer through the RHI for domestic users will be confirmed by the UK Government sometime soon. The level of funding available could therefore vary from the examples shown above.
This scheme will come into effect Autumn 2013. The domestic RHI will pay similar tariff rates but for 7 years rather than 20. All domestic households will be able to apply, including those on the mains gas grid. Some energy saving measures will also have to be implemented before the applications are passed.
Estimated examples of RHI payment for 3 boilers with differing outputs.
|Boiler size Kw||10 Kw||20 Kw||40 Kw|