In November 2011, the UK government launched the commercial Renewable Heat Incentive (RHI) scheme. This programme offers 20 years of payments to owners of heating systems using renewable fuel for the heat they generate and use.

New biomass installations need to be accredited by Ofgem, and once that is complete quarterly heat meter readings are submitted. These submissions determine the payments that will follow. The RHI tariffs are adjusted based on the Consumer Price Index (CPI), and are reviewed every three months. The current RHI tariffs can be viewed here.

The commercial RHI is a tremendous way to pay for the installation of your biomass heating system and receive a considerable return on investment, as installation costs are typically recovered in five to six years on average, including the cost of finance.

This return, alongside fuel cost savings of up to 50% compared to fossil fuels, result in a fantastic opportunity for businesses, public sector and non-profit organisations in England, Scotland or Wales to heat their premises in an environmentally friendly and ultimately profitable way.