As a result of the domestic RHI, homeowners installing a biomass boiler could secure a tax-free payment of nearly £60,000 at a potential ROI of 64%.
Natural Energy Company, Euroheat, has calculated that homeowners investing £35,000 in a domestic RHI biomass installation could see them potentially clock-up a return on investment of £57,645* over a seven year period plus an expected on-going reduction in fuel savings, and a boiler that will last two decades.
Euroheat co-founder Simon Holden explains how the figures stack up against a fixed term deposit account: “Bank versus Biomass - it’s a no brainer really. By investing £35,000 in a 45kW Euroheat biomass system, payback will be achieved in just over four years with a guaranteed, tax-free Government return of £57,645 during the seven years of the RHI scheme. Investing the same £35,000 in a seven-year fixed rate deposit account at 3.5 per cent will see a paltry return of just £1,031, after the adjustment for inflation.
“Installers need to be helping prospective biomass customers understand that installing a wood boiler under the domestic RHI takes great financial sense.”
While some homeowners are keen to ‘go green’, however, many more will be convinced by the investment potential of biomass - these figures pack a powerful punch and for the right property, are an opportunity too good to ignore.
In the commercial sector, biomass has by far been the most deployed technology.