Now is the time for biomass heating

    Act now on biomass heating to avoid tariff reduction, says Savills Energy

    Businesses considering installing biomass heating should act quickly to maximise their investment, because from 1 July the tariff payable for biomass heating under the first phase of the Renewable Heat Incentive will be reduced by 5 per cent.

    Government figures show that the Renewable Heat Incentive scheme has been instrumental in encouraging the uptake of biomass heating. The scheme, launched by the Department of Energy & Climate Change (DECC) in November 2011, supports and promotes the use of renewable energy to produce heat for industry, business and public sector organisations. However, the tariff for medium commercial biomass boilers (200kw to 999kW) is to be reduced by 5 per cent for new entrants from 1 July 2013. The DECC has also launched a consultation on increasing tariff levels for heat generated by ground source heat pumps, and large biomass and solar thermal kits.

    ‘It seems as if biomass heating has become a victim of its own success,’ says Duncan Brewer of Savills Energy. ‘It is disappointing that the DECC has seen fit to reduce the medium scale tariffs by 5 per cent; there is a danger that the reduction will undermine confidence in the biomass heat sector. Yet this should not be the case. Biomass heating is still viable and worth consideration, and we urge businesses considering applying to act sooner rather than later to secure the best possible tariff.’