domestic:commercial:industrial: 01756 790507
biomass the future of energy
A commercial case study:
190 kW Energy Cabin Installation:

Turn key cost £120 000   Chip Pellet
    Expected boiler life 25 years 25 years
Heating needs        
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%
    Yearly benefit £31,726 £27,940
    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
LPG 84600 Litres 49p £41,454 6.91p
Natural Gas 600,000kWh 3.711p £22,226 3.91p
Electricity 600,000kWh 10.112p £60,672 10.62p

But natural gas boilers will not pay you the renewable heat incentive. Once RHI is factored in, biomass becomes the least expensive option.
The example below based on purchasing a 200,000kWh boiler, shows how lower fuel costs and the RHI makes switching into wood pellets a decision for everyone, particularly for those businesses or households currently using heating oil.

  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
RHI Payment 0 0 £520,000
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.

Domestic RHI
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
Year 1 £911 £1,822 £3,645
Year 2 £929 £1,859 £3,718
Year 3 £948 £1,896 £3,792
Year 4 £967 £1,934 £3,868
Year 5 £986 £1,973 £3,945
Year 6 £1006 £2,012 £4,024
Year7 £1026 £2,052 £4,105
Total £6,774 £13,548 £27,096

Tel: 01756 790507    email:
Unit 5, Craven Nursery Park, Snaygill Ind. Est. Skipton, North Yorkshire BD23 2QR.
Terms and Conditions  |   Privacy Policy |   Site Map

all contents copyright ©
design web site design