By taking advantage of UK Government Initiatives you can save money on your Biomass Installation and even make money back!

In March 2011 the UK Government announced plans to introduce a range of incentive programs to encourage the uptake of renewable fuels in the UK. The plans are targeted at both Commercial and Domestic biomass customers and offer the opportunity to reduce the running costs of your installation and, via a payback scheme, earn money for every kW of heat generated.

If you have an existing installation that was fitted after July 15th 2009 by a MCS Registered Installer you may qualify for the RHI scheme, if you're in the planning stages of an installation please contact us as soon as possible to ensure everything is completed correctly and you won't risk missing out on your RHI payments!

Are you a Domestic or Commercial customer?

The definitions of what constitutes a domestic or commercial customer are somewhat vague and it can be difficult to get a straight answer from the relevant government bodies. If the building is not occupied as a dwelling, it will likely be considered a commercial installation and thus is covered by the commercial RHI scheme. However there are some "Domestic" establishments that can fall under the RHI including:

  • Installations that heat more than one living space. EG multiple houses or a main dwelling with outbuildings.
  • Agricultural properties that are Zero Rated for council tax purposes

Bear in mind that whilst PG Plumbing can offer advice on your installation it remains the responsibility of the customer to ensure they comply with all the associated legal requirements. Please check with your local authority and OFGEM before you commit to an installation.

If you have a single dwelling or the property is registered to pay council tax then you are most likely to be classified as a domestic customer. Whilst the details for the domestic RHI scheme are currently unknown they are due to be announced in Autumn 2012.

How do I qualify?

To qualify your installation must be have commissioned after July 15th 2009 and consist of newly purchased, MCS approved equipment installed by an MCS accredited installer*. Second hand equipment or boilers not certified by the MCS will invalidate your claim to payments via the RHI scheme.

As PG Plumbing are an MCS accredited company with business relationships with several MCS approved boiler suppliers you can rest assured that the installation we provide will qualify for RHI payments without issue!

Please check out the MCS Website for further information on the MCS scheme.


* For boilers below 45kW power rating, MCS approved installation is mandatory. It is not required for larger systems.

Commercial Customers

There are a variety of criteria that must be met in order to qualify for the commercial RHI tariff. Some non commercial customers such as those living on working farms, or running combined business/home properties can qualify, so please do check! Whilst we can offer advice for legal reasons the application details must be the final responsibility of the customer. For these reasons we ask all customers to review the OFGEM guidebook on RHI eligibility, which can be found here:

Domestic Customers

Although there is a Renewable Heat Incentive scheme planned for domestic customers in late 2012, OFGEM have not yet released any further information either regarding the qualification criteria, or the tariff rates. An announcement is due around August-October 2012, so please check back nearer to that time for more information.

Commercial RHI Payments

If you qualify for the Commercial RHI scheme you are eligible for payments on a 2-Tier scheme. Payments are eligible for heat generated in the first 1,314 hours of an installations running heat generation capacity at a Tier 1 rate, with all subsequent generation in the same 12 month period covered by the Tier 2 rate. This was set up to prevent people unnecessarily generating waste heat to capitalise on the payment scheme.

As of April 1st 2012 the rates are as follows:

Tariff NameEligible SizeTierTariff pence/kWHth
Small Commercial Biomass Less than 200kWth Tier 1 8.3
Tier 2 2.1
Medium Commercial Biomass

More than 200kWth
Less than 1000 kWth

Tier 1 5.1
Tier 2 2.1
Large Commercial Biomass More than 1000 kWth Tier 1 1

Worked example of RHI Payback

Worked example of RHI PaybackWorked example of RHI Payback