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Calculate costs and apply for funding

You should now have enough information to get estimates and work out whether wood fuel is financially feasible for you.

Estimates

Get estimates/proposals from equipment and fuel suppliers for:

  • Purchasing or leasing equipment
  • Installing the system
  • Supplying woodfuel
  • Maintaining the system

Allow a contingency on equipment and installation costs.

If you have to pay VAT, check to see if the equipment and services you buy is reduced-rated for VAT.

Enhanced Capital Allowances enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery.

You could also approach an energy services company (ESCo) to get an all-in-one price.

Payback

Compare your current fuel bills with the cost of the type of woodfuel and boiler you need, and calculate the payback period for your investment.

Funding

Find out about the Renewable Heat Incentive (RHI) where energy users are paid a tariff based on the amount of renewable energy they produce. Until October 2012 this is only available for non-domestic users; it will be then introduced for householders. However, there is some support for domestic users through the one-off RHI Premium Payment for equipment in the interim period.

There are various other sources of funding for wood fuel system installations.

Next step