Tag Archives: renewable heat

Is Biomass Heat Still Worth It? Why the Sector’s Future Looks More Secure Than You Think

Hands holding biomass woodchip fuel — is biomass heat still worth it under the RHI

Many biomass owners have quietly written off their boilers. The RHI closed to new applications years ago, heat policy keeps shifting, and it’s easy to assume renewable heat has had its day. So is biomass heat still worth it? For most existing participants, the answer is a clear yes — and the picture is far more positive than the headlines suggest.

The Sector Just Took a Major Step Forward

This month the industry reached an important milestone. The Wood Fuel and Heating Association (WFHA) has launched as the first trade body dedicated solely to the UK wood fuel and heating sector.

Chaired by Terence McCracken, it brings together fuel producers, distributors, installers and the businesses that operate biomass systems day to day — under a single, organised voice. For an industry that supplies a large share of the UK’s renewable heat, dedicated representation is long overdue, and it matters more than it might first appear.

Why This Matters for Your RHI Payments

The decisions that affect your biomass income aren’t made on your site. They’re made at Ofgem and in Westminster — tariff reviews, audit policy, sustainability rules, and the future treatment of existing accreditations. Until now, the sector has had a quiet, fragmented voice in those rooms. A credible trade body makes sensible, workable rules far more likely.

More immediately, there’s a point many owners overlook: if you hold an RHI accreditation, you were awarded 20 years of support. A system accredited in 2015 still has the better part of a decade of payments left to run. That isn’t a closing scheme — it’s a live, income-generating asset.

What This Means for You

If you operate an accredited biomass system, three things are worth doing now:

  1. Know your remaining term. Check your accreditation date and how many years of payments you have left. Most owners underestimate it.
  2. Stay compliant. Your income is only secure while your system meets Ofgem’s requirements. Out-of-date heat meters and missing HETAS servicing records are the two most common reasons payments get reclaimed — see our guides on the 10-year meter rule and HETAS servicing.
  3. Understand what your system is worth. Accredited systems can change ownership and even location. If yours is underused, the remaining RHI income can be realised through a sale — or, if you need heat, buying an accredited system can turn a fuel bill into an asset. We cover this through our second-hand renewables service.

Our View

So, Is Biomass Heat Still Worth It? In our experience as an RHI consultancy, the businesses that do best from the scheme aren’t the ones with the newest kit — they’re the ones who stay on top of their compliance and understand the value of what they already own. The launch of the WFHA is a clear signal that biomass heat isn’t being left behind. The sector is professionalising, organising, and securing its place in the UK’s renewable heat mix.

Existing participants who keep their systems compliant stand to benefit from that, whatever policy decisions come next.

Useful Links

Get in Touch

Not sure how many years of RHI payments you have left, or whether your system is fully compliant? We’ve supported thousands of participants through compliance, audits and system transfers, and we can quickly assess your position.

📞 01324 619 425 📧 rhi@yourenergysource.co.uk 🌐 yourenergysource.co.uk

RHI Is Closed — But You Can Still Get Paid for Renewable Heat

While the Renewable Heat Incentive (RHI) is now closed to new applications, existing participants were awarded 20 years of RHI support for their renewable heat systems. That means boilers installed 10 years ago still have another decade of payments to run. This provides a unique opportunity for businesses to get paid for renewable heat — even though the scheme has officially closed.

Many of these systems are now underused or no longer needed. The owners might be selling a business or farm, restructuring a site, or simply no longer have sufficient heat demand.

Buying or Selling an RHI-Accredited System

The RHI allows accredited systems to change ownership and even move location.

This creates a valuable opportunity on both sides:

  • Sellers can recover value from systems they no longer use.
  • Buyers can acquire an existing, accredited system and continue to earn RHI income — turning what was once a fuel expense into an asset.

If you operate a site that requires heat for commercial or multiple domestic premises, this could be an ideal solution. Instead of paying thousands each year for oil or gas, you could be earning income for renewable heat.

Example: System Available for Sale

Output: 250 kW thermal
Tariff: 7.9 p/kWh
RHI start date: 29 December 2015
Annual Tier 1 RHI income: £24,913
Tier 1 payments remaining: £252,387

A system like this could generate around £25,000 per year in RHI payments while supplying heat to your business.

Eligible Uses for Heat

A huge range of businesses are finding new ways to get paid for renewable heat by purchasing existing RHI-accredited systems We work with a wide range of eligible sites and heat uses, including:

  • Hotels and leisure centres
  • Farms and grain drying
  • Factories and workshops
  • Multi-property developments such as flats or holiday lets
  • Hospitals, universities, and schools

If the heat is supplied for a commercial purpose — or across multiple dwellings — it’s likely to be eligible.

Compliance and Legal Considerations

There are a lot of complex and nuanced rules around this area of the RHI, for example, you cannot just sell the RHI itself, you must sell the entire accredited plant and the RHI.

Our team of very experienced RHI consultants manage these transactions daily.  We ensure your sale, relocation, and amendment is fully compliant with Ofgem requirements.

We’ve completed hundreds of successful RHI system transfers, plant sales, and compliance updates.
Learn more here:
👉 https://www.yourenergysource.co.uk/second-hand-renewables/

Useful Links

If you’d like to explore how your business could get paid for renewable heat, contact our compliance team.   

Get in Touch

Whether you’re looking to sell an existing RHI system or explore buying one, our team can help you assess eligibility, valuation, and compliance.

📧 rhi@yourenergysource.co.uk
📞 01324 619 425
🌐 yourenergysource.co.uk