As well as being an environmentally friendly fuel, wood pellets also have significant financial benefits. A combination of the Renewable Heat Incentive, insulation against volatile price rises, and cheaper fuel make switching to wood pellets a very attraction proposition for your bank balance.
Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a Government funded scheme which encourages the uptake and use of renewable energy technologies. Under this scheme biomass users will receive guaranteed payments for a 20 year period depending on the level of energy produced via renewable means. The RHI is expected to increase UK renewable heat production from 1.2% today to 12% in 2020, with approximately £860million pledged in order to achieve this. An average office block which installs a wood pellet boiler could expect estimated annual RHI payments of over £20,000.
Once you have taken into account the amount of fuel you use each year, you can calculate just how much switching to wood pellets will save you. Wood pellets are significantly cheaper than the likes of heating oil and electricity, whilst providing you with the same level of energy. For instance, for an office building using 600,000kWh of energy it would cost just £24,660 to heat annually with wood pellets, compared with £39,000 with heating oil and £60,672 with electricity.
Fuel Price Rises
The drastic increase in energy prices from gas, electric and oil companies is well documented each year. For instance, heating oil costs have increased from 45.5p per litre to over 75p. Whilst oil and gas costs are notoriously volatile, the wood pellet industry is much more stable. With production of pellets now based in the UK, the price of wood pellet fuel has further increased its stability.
Wood Pellets are one of the most cost effective fuels currently available in the UK and the launch of the Renewable Heat Incentive has only gone to further the financial benefits of wood pellets.
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