Ashwell Biomass - your RHI partner
Ashwell Biomass work with you to design, manufacture, install and service your RHI qualifying installation.
With our full engineering facility and in-house fabrication expertise, we will deliver a solution bespoke to your specific needs
Highlights
The UK government has introduced the RHI scheme to encourage the switch to heat generated by renewable sources. This subsidy applies to qualifying biomass installations:
Renewable Heat Incentive (RHI) Scheme
Introduction
Increasing renewable heat is key to the UK meeting its renewable energy targets, reducing carbon emissions, ensuring energy security and helping to build a low carbon economy.
The introduction of the Renewable Heat Incentive (RHI) scheme by the UK Government is intended to increase significantly the proportion of heat that is generated from renewable sources. By encouraging a switch from fossil fuels, this will contribute towards the UK’s wider carbon reduction goals. The RHI is intended to compensate for the higher cost of renewable heating technologies, which will help make renewable heating an option for all.
A summary of the main points applicable to biomass boiler installations are outlined below. For a the full Renewable Heat Incentive (RHI) publication, please click here
Eligible biomass installations
In order to be eligible to claim the RHI, equipment must be:
- a new installation;
- first commissioned on or after the 15 July 2009;
- generating heat for an eligible use (see below); and
- metered output.
Eligible uses of heat
The RHI will only support ‘useful’ heat. This is defined as follows:
- Heat supplied to meet a justifiable heating requirement;
- Load should be an existing or new heating requirement i.e. not created artificially, purely to claim the RHI; and
- Acceptable uses are space, water and process heating
Payments
RHI payments will:
- only be made to the ‘owner’ of the biomass installation through an application made directly to Ofgem;
- be calculated by multiplying the appropriate tariff by the amount of eligible heat; and
- be made over a period of 20 years on a quarterly basis following the submission of the required periodic information
Example – Small biomass
A qualifying 180kW biomass installation in a school. Assumed operation - 10 hrs per day; five days per week; 35 weeks per year. Assumed generation of 315MWh of useful heat per annum from 70 tonnes of wood pellet. Approximate installed capital cost £75k:
RHI calculation:
Tier break = 180 x 1,314 = 236,520 kWth
Tier 1: 236,520 @ 8.3p = £19,631.16
Tier 2: 78,480 @ 2.1p = £ 1,648.08
315,000 £21,279.24
If generated evenly throughout the year, payments will be received of £5,319.81 per quarter
Fuel costs:
70 tonnes of pellet x £190 per tonne* = £13,300
Benefit:
Energy costs covered AND £7,979.24 cash benefit* AND, assuming no change in fuel price, every year for 20 years.
*based on typical fuel price at April 2012
Tariff (based on OFGEM guidance, issued June 2011)
| Tariff name | Eligible size | Tier 1 rate (pence/kWh) |
Tier2 rate (pence/kWh) |
| Small biomass | Less than 200kWth | 8.3 | 2.1 |
| Medium biomass | 200 kWth and above; less than 1,000 kWth | 5.1 | 2.1 |
| Large biomass | 1,000 kWth + | 1.0 | |
|
Tier 1 is on output below the Tier Break; Tier 2 is on output above the Tier Break Tier Break (annually) = installed capacity x 1,314 peak load hours |
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Boiler Ranges qualifying for the RHI
| Fuel Type | Example Uses | ||
Wood Chip
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√ | Domestic | √ |
Wood Pellets
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√ | Small Commercial/ Industrial including containerised plant room | √ |
Logs
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√ | Medium Commercial/ Industrial e.g. Office Block, district heating schemes | √ |
Firewood
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√ | Large Commercial/ Industrial e.g. Factory, Hospital | √ |
| Other | √ | Containerised plant room | √ |
| Fuel Type | Example Uses | ||
Wood Chip
![]() |
√ | Domestic | Χ |
Wood Pellets
![]() |
√ | Small Commercial/ Industrial including containerised plant room | Χ |
Logs
![]() |
Χ | Medium Commercial/ Industrial e.g. Office Block, district heating schemes | √ |
Firewood
![]() |
Χ | Large Commercial/ Industrial e.g. Factory, Hospital | √ |
| Other | √ | Containerised plant room | Χ |
| Fuel Type | Example Uses | ||
Wood Chip
![]() |
Χ | Domestic | √ |
Wood Pellets
![]() |
√ | Small Commercial/ Industrial including containerised plant room | √ |
Logs
![]() |
Χ | Medium Commercial/ Industrial e.g. Office Block, district heating schemes | √ |
Firewood
![]() |
Χ | Large Commercial/ Industrial e.g. Factory, Hospital | Χ |





