Biomass Boiler Grants: RHI Scheme Applications Guide

Whilst the domestic Renewable Heat Incentive (RHI) scheme officially closed to new applications in March 2022, understanding biomass boiler grants and funding options remains crucial for UK homeowners considering renewable heating solutions. The legacy of the RHI scheme continues to shape the renewable heat market, and new funding opportunities are emerging through various government initiatives. This comprehensive guide explores the current landscape of biomass boiler funding, alternative grant schemes, and practical considerations for those looking to invest in sustainable heating systems across the UK.

Understanding the RHI Scheme Legacy

The Renewable Heat Incentive was the UK government’s flagship programme for encouraging the adoption of renewable heating technologies. Running from 2014 to 2022, the scheme provided quarterly payments to homeowners who installed eligible renewable heating systems, including biomass boilers. Participants received payments based on the amount of renewable heat generated, calculated using deemed heat requirements for domestic properties.

For biomass boilers specifically, the RHI offered tariff rates of approximately 6.97p per kWh of renewable heat produced. Over the seven-year payment period, this could amount to substantial returns, often covering the initial installation costs and providing additional income. Properties in rural areas of Scotland, Wales, and Northern England particularly benefited from the scheme, where biomass fuel sources were readily available and mains gas connections were limited.

Existing RHI participants continue to receive their quarterly payments for the full seven-year term, regardless of the scheme’s closure to new applicants. These legacy payments remain index-linked and adjusted annually in line with the Consumer Price Index, ensuring continued support for early adopters of biomass technology.

Current Funding Options for Biomass Boilers

Following the RHI closure, several alternative funding routes have emerged for biomass boiler installations:

• Boiler Upgrade Scheme (BUS): Launched in April 2022, this scheme offers grants of £5,000 for biomass boilers in England and Wales. The grant is paid directly to installers, reducing upfront costs for homeowners.
• Home Energy Scotland Loan: Scottish residents can access interest-free loans up to £7,500 for biomass boiler installations, with additional grants available for rural properties.
• ECO4 Scheme: The Energy Company Obligation provides funding for low-income households, potentially covering full installation costs for qualifying properties.
• Local Authority Grants: Various councils across the UK offer discretionary grants for renewable heating, particularly in areas like Cornwall, Cumbria, and the Scottish Highlands.

The Green Homes Grant Local Authority Delivery scheme continues in modified form through various regional programmes, with funding allocated to local councils for distribution. Areas with high levels of fuel poverty, such as parts of Wales and Northern Ireland, often receive priority funding allocation.

Biomass Boiler Installation Costs and Savings

Understanding the financial implications of biomass boiler installation is essential for accessing appropriate funding. Current market prices for biomass systems vary considerably based on property size and system specifications:

• Small domestic systems (12-15kW): £8,000 – £12,000
• Medium systems (20-25kW): £14,000 – £18,000
• Large systems (30kW+): £20,000 – £25,000
• Automated pellet storage systems: Additional £3,000 – £5,000
• Installation and commissioning: £2,000 – £4,000

Annual running costs typically range from £600 to £1,200 for wood pellets, compared to £1,500 to £2,500 for oil heating in comparable properties. Properties in Yorkshire, Lancashire, and rural Scotland report average savings of £400-£800 annually when switching from oil to biomass, with greater savings achieved when sourcing local wood supplies.

The payback period for biomass installations has extended following the RHI closure, now typically ranging from 12 to 18 years without grant support. However, with available funding through the Boiler Upgrade Scheme or regional programmes, this can reduce to 8 to 12 years, making biomass a viable long-term investment for suitable properties.

Application Process for Current Grants

Navigating the application process for biomass boiler grants requires careful preparation and understanding of scheme requirements:

Boiler Upgrade Scheme Application Steps:

• Check eligibility: Property must have an EPC rating of D or above (unless exempt) and be off the gas grid
• Find an MCS-certified installer: Only registered installers can apply on your behalf
• Obtain quotes: Secure detailed quotes including all installation costs
• Installer applies: Your chosen installer submits the application through the Ofgem portal
• Approval and installation: Following approval, installation must complete within 12 months
• Grant redemption: Installer receives payment directly and deducts from your invoice

Documentation Requirements:

Essential documents for grant applications include:

• Property ownership proof (Land Registry documents or mortgage statements)
• Current EPC certificate (dated within 10 years)
• Planning permission (if required for your installation)
• Detailed installer quotes on MCS-headed paper
• Proof of off-gas-grid status (for BUS applications)
• Income evidence (for means-tested schemes like ECO4)

Processing times vary by scheme, with BUS applications typically approved within 10-15 working days, whilst ECO4 assessments may take 4-6 weeks due to additional verification requirements.

Eligibility Criteria and Requirements

Each funding scheme maintains specific eligibility criteria that applicants must satisfy:

Property Requirements:

• Location: Must be in England, Wales, or Scotland (Northern Ireland has separate schemes)
• Insulation standards: Adequate loft insulation (minimum 270mm) and cavity wall insulation where applicable
• Building type: Domestic properties only, excluding new builds for most schemes
• Heating system: Replacing fossil fuel systems (oil, LPG, coal, or electric)

Technical Specifications:

Biomass boilers must meet stringent performance standards:

• Seasonal efficiency rating of 75% or higher
• Emissions compliance with Clean Air Act requirements
• MCS certification for both product and installer
• Appropriate fuel storage capacity (minimum 3 tonnes for pellet systems)
• Suitable flue system meeting Building Regulations Part J

Properties in smoke control areas, including most of Greater London, Birmingham, and Manchester, require exempted appliances listed on the DEFRA website. Rural properties in National Parks or Areas of Outstanding Natural Beauty may face additional planning restrictions, particularly in the Lake District, Peak District, and Scottish Highlands.

Regional Variations and Local Schemes

Funding availability and support levels vary significantly across UK regions:

Scotland:

The Scottish Government provides enhanced support through Home Energy Scotland, offering both loans and cashback grants. Rural properties in the Highlands and Islands can access additional funding through the Scottish Rural Fuel Poverty Task Force initiatives. Aberdeen, Inverness, and Perth councils operate supplementary grant schemes for off-gas properties.

Wales:

The Welsh Government’s Warm Homes Programme includes provisions for biomass installations in suitable properties. Areas like Powys, Ceredigion, and Gwynedd, with high proportions of off-gas homes, receive priority funding allocation. The Nest scheme provides free installations for qualifying low-income households.

England:

Regional variations exist through Local Authority Delivery schemes. Cornwall Council’s Climate Emergency Development Plan includes biomass boiler grants up to £10,000 for qualifying properties. The North East Combined Authority offers additional support through the Green Homes Grant extension programme.

Northern Ireland:

Following the controversial RHI scheme closure, Northern Ireland operates separate funding mechanisms through the Northern Ireland Sustainable Energy Programme, offering grants up to £3,500 for biomass installations.

Choosing the Right Installer

Selecting a qualified installer is crucial for accessing grants and ensuring system performance:

Essential Qualifications:

• MCS certification for biomass installations
• HETAS registration for solid fuel systems
• Gas Safe registration (if connecting to existing systems)
• Appropriate public liability insurance (minimum £2 million)
• TrustMark registration for government-funded work

Questions to Ask Installers:

• How many biomass systems have you installed in the last 12 months?
• Can you provide references from local installations?
• What warranty terms do you offer on installation work?
• Do you handle grant applications on behalf of customers?
• What ongoing maintenance packages are available?

Reputable installers in regions like Yorkshire, Devon, and the Scottish Borders typically have extensive experience with rural installations and established relationships with local fuel suppliers. Obtaining multiple quotes remains essential, with price variations of 20-30% common between installers.

Future Outlook for Biomass Funding

The renewable heat sector continues evolving with new funding mechanisms under development:

The UK government’s Heat and Buildings Strategy indicates continued support for biomass in suitable off-gas properties, particularly in rural areas where heat pump alternatives may be impractical. The upcoming Green Heat Network Fund includes provisions for biomass-powered district heating systems, potentially benefiting communities in areas like the Scottish Highlands and rural Wales.

Local authorities are increasingly incorporating biomass boiler support into climate action plans, with councils in Cumbria, North Yorkshire, and Shropshire developing targeted grant schemes for 2024-2025. The anticipated review of ECO4 in 2024 may expand biomass eligibility criteria, potentially increasing funding availability for middle-income households.

Industry experts predict that biomass boiler grants will remain available in various forms through 2030, aligned with the UK’s net-zero commitments. However, funding levels may fluctuate based on government priorities and competing renewable technologies.

Conclusion

Whilst the RHI scheme’s closure marked the end of an era for biomass boiler funding, numerous alternative grant options continue supporting renewable heat adoption across the UK. The Boiler Upgrade Scheme, regional programmes, and targeted support for vulnerable households ensure biomass remains a viable option for suitable properties, particularly in rural and off-gas areas.

Success in securing funding requires thorough preparation, understanding of eligibility criteria, and selection of qualified installers. With typical grants of £5,000 available through the BUS and potential additional support through local schemes, the financial burden of biomass installation has reduced significantly. Property owners in areas like Scotland, Wales, and rural England can particularly benefit from enhanced regional support.

As the UK progresses towards net-zero targets, biomass boilers will continue playing a crucial role in decarbonising heat for properties unsuitable for heat pumps. By carefully navigating available funding options and working with experienced installers, homeowners can access the financial support needed to transition to renewable heating whilst contributing to national climate objectives.