How to make money (up to £35,000) from the wood pellet fuel heating.


Residential Sector (Domestic)

The UK Government aim to launch the RHI Premiun Payments for the domestic sector in July 2011. This is a onetime payment of £950 per central heating eligible biomass appliance, followed by long term quarterly tariff payments under the Green Deal for Homes scheme from 2012.

Everybody who has installed a pellet boiler since July 2009 will be eligible for the RHI payment, but only new installations from July 2011 will be eligible for the Premium payments and, in addition to that, the quarterly long term financial support from 2012.

How is the Residential annual RHI payment calculated?

The Renewable Heat Premium payments of £950 per boiler installation will be launched for individual domnestic installations in July 2011 and this is in addition to the RHI tariff payments when those come out. For eligibility both the installer and the product must be MCS certified.

Commercial Sector (Non Domestic)

Eligible non-domestic installations commissioned on or after 15th July, 2009 are now eligible for support according to tariffs published by the UK Government and for a duration of 20 years. Non-domestic includes: business, charities, public sector, National Trust properties, Local Authorities, retailers, small offices, shops, garden centres, Public Libraries, etc. Both installers and equipment must be certified under the Microgeneration Certification Scheme (MCS) to offer quality assurance and consumer protection.

Heat output is to be metered and support calculated from the amount of eligable heat, multiplied by the tariff level. Payments will be made quarterly over a 20 year period.

Example (Non Domestic)

Example based on a 22kW (18kW to water) stove running at 100% load factor: the annual RHI is calculated as follows
kW 18 x Hours 1,314 x £0.067 x Years 20 = £35,951
Annual RHI Cash payment: £1,797
Average RHI payment per kWh: 7.6 pence per kWh/ (£1,797 x 100 / kWh 23,652)


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