Domestic Renewable Heat Incentive announcement – Wood Pellet Boiler Solutions

The Renewable Heat Incentive has been announced today (9 April 2014) and is now welcoming applications for suitable installations.

The tariff for the domestic Renewable Heat Incentive has been announced as 12.2p per kw for 7 years

This equates to about £160 per kW per annum.

A 40kW boiler could earn £6400 per annum or £44,600 in total over 7 years.

For instance there is a need for a Green Deal Assessor to visit each home, and this is to check insulation in the loft and in the walls where applicable. The EPC that they undertake will be the basis for the award of the incentive. E.g. if they say you need 30,000 kWhs of heat per annum then you will be paid 12.2p X 30,000 per annum = £3660 per annum or £25,620 in total over 7 years.

How does this work for a typical installation?

For smaller boilers between 10 and 15kW we offer a choice of boilers from MCZ such as the Musa, or Extraflame such as the LP14 or a Sunsystem Pelleburn 15kW.

Wood Pellet Boiler

Pelleburn 15kW


Extraflame LP14

MCZ Musa

Boilers of this sort are available for between £3000 and £4000 depending on model. Total installation prices vary according to what is possible and what you want – however consider the following:

A stainless steel flue

A hot water tank or thermal store

Pellet stores or hoppers

These can all add in extra costs to the end bill. However typical installations are between £8 and £12k in this range. The exact amounts are determined through a survey.

You may typically earn between £3,000 and £5000 from the Renewable Heat Incentive payments for installations between 10 and 15 kW. In addition there are fuel savings. We believe these to be between 20 and 30 percent against an oil boiler of a similar efficiency. At this range of output it may well be £200-300 per annum or a further £1500 to £2000 in total.

A larger installation of £40kW may require more pellet storage, a larger pipe size, a larger buffer store or accumulator tank and will require more space. Typical costs are best discussed with us directly. Boilers of this size may typically earn £44,600 over 7 years.

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