The Log Pile Website - Grants/Funding

The RHI is a Government scheme that provides financial support to renewable heat generators and producers of biomethane. It aims to do this in several phases - from 1st August 2011 Renewable Heat Premium Payments will be available to householders. From 30th September 2011 non-domestic generators of renewable heat will be eligible to receive tariff payments for every kWh of renewable heat generated (Phase 1). From October 2012 this is due to be extended to householders (Phase 2).

The Renewable Heat Incentive (RHI) enables householders off the gas network in England, Wales and Scotland to apply for a £950 Renewable Heat Premium Payment toward the cost of having a biomass boiler installed.

The scheme is being run by the Energy Saving Trust (EST) on behalf of DECC. Successful applicants receive a voucher which has to be signed and returned to EST together with the installer's invoice and a certificate. It is a pre-condition for RHI payments that all products and installers used are accredited by the Microgeneration Certification Scheme.

The Renewable Heat Premium scheme opened on 1st August 2011 and is due to run until 31st March 2012. However, funds are limited to £15m so the scheme could end early if demand is high.

Payments are also available to householders installing air source heat pumps, ground source heat pumps (but again only for those off the gas network) and solar water heating (for all households).

The aim of the RHI is to provide a continuous income stream over twenty years to any organisation that installs an eligible renewable heating system, ensuring that it becomes more commercially attractive than fossil fuel alternatives. Technologies include biomass boilers (but not wood burning stoves). After several postponements the scheme is now due to come into force on the 30th September 2011, although this start date could be postponed again. Further information can be found on DECC’s website. The administration of Phase 1 is being managed by Ofgem.

For further information on the tariff rates and the RHI generally go to the main National Energy Foundation website.

The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households. This transition will be timed to align with the Green Deal, which is intended to be introduced in October 2012.

We are not aware of any other national grant scheme for householders wishing to intall a wood fuel heating system. You may however which to check the database of grants available for the installation of renewable energy technologies as maintained by the Energy Saving Trust as there may be local schemes that you could apply for.

Provides 50% funding (up to £30,000) to organisations with a social purpose (e.g. schools, local community buildings, museums or churches) for any commercially proven renewable energy technology. Match funding from another commercial organisation would have to be notified to them in the grant application. Some money is also available for feasibility studies. Funding applications are assessed twice a year at the end of August and at the end of February. See http://www.edfenergy.com/products-services/for-your-home/our-green-products/green-energy-fund.shtml# for further information.

This fund has been set up to support community energy projects which either result in the production of energy from a sustainable source or which reduce the amount of energy used by a community organisation. No funding deadlines have been announced for 2011 – it is best to check their website for dates and the geographical areas they will be focusing their funding on.
The fund is available to community groups, charities and not for profit organisations across England, Scotland and Wales and applications for grants of up to £20,000 can be made. The fund does not support residential or commercial projects. http://www.eon-uk.com/about/2688.aspx

This fund can provide up to 50% of a community’s project costs up to a maximum of £25,000 but most projects receive around £10,000. The Trust meets twice a year to consider applications – usually during the first week of April and October. For further information see http://www.scottishpowergreentrust.co.uk/content/

The Community Scale Renewable Energy Generation Project - Ynni'r Fro (Wales)

The Ynni’r Fro project (see http://www.energysavingtrust.org.uk/Wales/Ynni-r-Fro) will provide £100,000 to £300,000 per project to support around 22 new and existing social enterprises develop community based renewable energy schemes, such as wind, biomass and hydro power. In addition, around 135 small grants of up to £3,000 will be available to help communities to undertake feasibility studies into potential renewable energy schemes, followed by 35 grants of up to £20,000 to help them develop their projects.

This scheme is managed by the Carbon Trust on behalf of DEFRA and HM Revenue and Customs. This gives business 100% first year tax relief on their qualifying capital expenditure. An Energy Technology List (ETL) details technologies included in the ECA scheme. The ECA scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. For more information visit the ECA website http://www.eca.gov.uk/etl

Information on other current grants and loans for the installation of biomass systems can be found on the Biomass Energy Centre website.