A Financial Incentive to Install Eco Friendly Wood Burning Boilers
All Eco Angus boilers are fully accredited under the Microgeneration Certification Scheme (MCS) and as a consequence there are grants available for these boilers under the Renewable Heat Incentive (RHI).
The RHI is a Government environmental programme that provides financial incentives, to individuals, businesses and organisations, to increase the uptake of renewable heat. There are two schemes, Domestic RHI and Non-Domestic RHI, which have separate tariffs, joining conditions, rules and application processes. Each application can only be to one of the schemes.
Non-Domestic Renewable Heat Incentive
By providing a long-term financial incentive, the objective of the Non-Domestic RHI is to significantly increase the proportion of heat generated from renewable sources.
If you are looking to heat a commercial property or a district heating scheme (more than one domestically rated properties) it is probable that you are eligible for the grants available under what is known as the non-domestic phase 1 of the RHI.
Typically this could pay 6.8p per kWh for the first 1,314 peak hours of the nominal rating of the boiler. So, for example, this would be £3,574 payment per annum if the full tier 1 allowance for a 40kW boiler was used. This tax free payment would be paid quarterly over 20 years as long as the product was installed by an MCS approved installer.
For more information about what kind of organisations, businesses and buildings the scheme is open to and for the most recent announcements concerning non-domestic RHI click here
Domestic Renewable Heat Incentive
The Domestic RHI is a financial incentive to promote the use of renewable heat. Switching to heating systems that use naturally replenished energy can help the UK reduce its carbon emissions.
The Domestic RHI pays 10.98p per kWh for the deemed heat loss of your property, unless you have a fossil fuel back up in which case it would be paid against the eligible heat generated measured by a heat meter. The tax free payment is paid on a quarterly basis over a 7 year period and is linked to the Retail Prices Index (RPI). To be eligible for the Domestic RHI it is essential that the product is MCS approved and is installed by an MCS approved installer.
The most up-to-date Domestic RHI announcements can be found here https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive. Rates changing from 1st April 2015
It is important to note that the RHI rates are decreasing for boilers which are commissioned from 1st April 2015. The Non-Domestic RHI rate will be decreasing to 5.87p per kWh and the Domestic RHI rate to 8.93p per kWh.
Case Study: Family Finds Warm Eco Friendly Heating Allternative
Richard and Tracy and their children live in a five bedroom house with an office above their garage for their business. The house is very exposed, single glazed and has solid walls with no space for insulation. The fuel used for heating, hot water and cooking was oil which was expensive and due to their location gas isn’t available.
They double glazed the windows, swapped the aga far an electric cooker, installed solar thermal to heat water and had a wood-burning stove installed. However, even with all these improvements the buildings were still very difficult and expensive to heat.
They researched an alternative way to heat and provide hot water. It was hugely important to them that the end result would be eco-friendly and cost effective so, after careful consideration, they chose to have an Angus Orligno 200 40kW log boiler installed.
In comparison to other suppliers’ boilers, they were impressed with the simplicity of the Eco Angus boilers making them more straight forward, cheaper and easier to maintain.
The system was installed three years ago and the couple receive payments through the Non-domestic Renewable Heat Incentive (RHI). When asked about whether they were happy with the efficiency, cost and performance of the system they said:
‘The boiler is very efficient, there’s plenty of hot water and the house is now nice and warm. It has definitely been value for money especially with the Renewable Heat Incentive payments’.
The total cost, including the installation, of the system was £15,000. Since having it installed their annual fuel cost has halved and they receive an average of £1,848 in RHI payments for the 21,000 kW hours used each year.
Based on these figures their Eco Angus boiler will have paid for itself within just over 5 years with them still receiving RHI payments for the whole 20 year term. If they used their full allowance of a maximum of 52,560 kW hours the time taken for the boiler to pay for itself would be just under 3 years.
In conclusion the eco-friendly Eco Angus wood burning boiler is an effective way to produce hot water and heat, means value for money and even saves money in the long term. It is straightforward and uncomplicated meaning the system is unlikely to breakdown and gives flexibility in obtaining the fuel from different, sometimes free, sources.
Case study: Somerset Venue Profite from Eco Angus Boiler
Aldwick Court Farm & Vineyard is located at the foot of the Mendip Hills in Somerset. With its stunning views of the surrounding countryside, the farm is an extremely popular venue for weddings, wine tasting tours and other special occasions. Heating across the entire site had previously been provided by expensive and inefficient oil boilers.
It was necessary to provide heating and hot water to multiple areas of the farm including; farmhouse, visitor centre, function and event Rooms, offices and a flat in an affordable, eco-friendly and sustainable way.
With Eco Angus’ help the team of highly trained installers at Blake Ecotec designed and installed an environmentally friendly, high powered solution capable of providing heating and hot water across the entire site. A purpose built barn was constructed to house the Eco Angus Orlan Super 130kW Log Gasification Boiler, 10,000 litre Akvarterm accumulator tank and the 6 metre high, 300mm NOVA stainless steel flue.
The boiler's 130kW heat output and large loading capacity means it is capable of burning logs, with a moisture content of 15-20%, up to 100cm in length. The solution works at 91% efficiency and can burn for up to 12 hours continuously. This high efficiency means that, during the summer months, a single weekly load will ensure enough hot water is provided to every building on site.
This solution is not only an eco-friendly and sustainable source of heat but also an incredibly financially rewarding investment. Aldwick Court's new system is compliant with the Non-Domestic Renewable Heat Incentive (RHI) scheme and will receive payments over a 20 year period. They will receive RHI payments of 8.8p per kWh of heat generated by the system, a total of approximately £403,900 in Government Payments.
The Eco Angus Orlan Super 130kW Log Boiler solution will also deliver substantial net fuel cost savings of £258,636 acrossthe 20 year scheme. In comparison with fossil fuels, this will save £4,000 in the first year, rising to £26,000 in the final year of the RHI scheme on fuel alone. Add this to the savings made on fuel and the project will gain approximately £662,500 in additional income over 20 years. The RHI payments and the fuel cost savings will see the initial outlay paid off in just over 1 year, before turning a profit for the remaining 19 years of the scheme.
Last, but certainly not least, Aldwick Court’s carbon footprint will be reduced. The Renewable Heat Solution will reduce the site's Carbon Footprint by an incredible 36 tonnes of CO2 per year, a 90% reduction.