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Goverment grants are available for switching to a wood pellet boiler.

Under the Renewable Heat Incentive (RHI) you can claim a cashback sum for installing a biomass boiler, plus you be eligible for regular payments that are due to be start in 2014.

The incentive scheme for renewable heat in domestic properties will be made available to homeowners, private and social landlords, third party owners of heating systems and people who build their own homes.

Payments will be based on the property's calculated energy requirement in kilwatt hours. Applicants for the domestic Renewable Heat Incentive (RHI) will need to have a Green Deal assessment which will determine the energy requirement and therefore the level of payments.

Payments will be made on a quarterly basis for seven years. The tariffs have been set at a level that reflects the expected cost of renewable heat generation over 20 years. In most cases, payments will be made based on estimated heat demand of the property.

How do the payments work?

For biomass boilers the payments are currently set at 12.2p per kilowatt hour (August 2013).

A property deemed to use 15,000 kW/h in a year would therefore receive 15000 x 12.2p = £1,830.00 per year for 7 years.

Please note that all properties are different and this figure is to illustrate the calculation process only.

If you're a business user you can claim regular payments now. See our Commercial Renewable Heat Incentive page for more information.

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