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No more oil, electricity, or gas bills for space heating or hot water, with the opportunity to source sustainable fuels locally. How’s that for security of price and supply? Isn’t this how it should be? Commercial biomass means more money back in your business where it can do some good.

This is one of the best ways to heat your business if you’re off the mains gas network. For example, it’s just such an ‘opportunity’ that many hotels going green are taking advantage of. You also get paid by the Government for the heat you generate. This payment is through the Renewable Heat Incentive (RHI) scheme – currently for 20 years.  That’s passive income for 20 years, on top of  reduced fuel bills and reduced Climate Change Levy (CCL).

Did you know you can now replace your inefficient, ageing biomass boiler and retain your current rate of RHI?  This offer comes with a guarantee that you’ll save money.

With a modern commercial biomass boiler and a 24/7 service response from IU Energy, you’ll literally fire and forget, even managing the plant remotely and having biomass fuel delivered to your fuel store without the need for your attention.

Technology brands we use for all our renewable and energy saving installations are selected for reliability, longevity, product range and warranty. For commercial biomass boilers, there is none better than ETA, and we are a fully accredited partner of Innasol, ETA’s exclusive UK distributor. Aside from meeting our demanding selection criteria, their support services also enable us to remotely monitor all our installations and this ensures we are aware of any developing problems before our clients are.

You can download a Technology Information Sheet here.

Below are some of our case studies for projects we have been carried out in commercial biomass (and some high-end domestic), followed by FAQs.


By switching to a biomass boiler from a fossil fuel source such as oil, you could expect to see fuel savings anywhere between 30% to 50%, or even up to 80% if biomass is replacing electricity for heating. Biomass is organic material derived from organic sources such as wood chip, wood pellet, logs, grains, straw and miscanthus – all typical fuels. Biomass energy is therefore, produced by burning these biological materials to provide a renewable and sustainable source of fuel. Of all the biomass material, wood fuel remains the most commonly used form in biomass boilers.

Many businesses can burn by-products produced on site, such as pallets and wood off-cut. This not only provides some businesses free fuel, but also removes disposal costs associated with waste removal from site.

Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies amongst householders, communities and businesses through financial incentives. There are a variety of tariffs, some of which are illustrated here. There are a few qualifiers:

  • Your biomass system must have been installed after July 15, 2009.
  • Emission levels must be below a maximum 30g/GJ Particulates and 150g/GJ Nitrogen Oxide; and
  • Installations below 45kW must be Microgeneration Certification Scheme (MCS) accredited.

Commercial biomass boilers qualify for 20 years of RHI payments, paid quarterly. A tariff level will be assigned to your installation based on its technology (e.g. biomass, heat pump, solar) and size.

Payments will be made based on the actual heat output of the installation and begin to accrue from the date of accreditation of the installation.

Whilst biomass heating systems will cost more than the equivalent fossil fuel boiler, there are significant financial benefits by opting for biomass, with a typical installation seeing a long-term return on investment of around 20% for 20 years. That’s far better than leaving your cash in a bank.

Yes – this scheme came into force on the 1st October 2018. You are now able to continue to claim non-domestic RHI if you replace your biomass boiler ‘like-for-like’. ‘Like-for-like’ refers to technology type and capacity. So, you can install replacement biomass plant to replace a boiler that is causing you problems. But you will lose your RHI if you switch technologies, for example from biomass to ground source heat pump, or heat pump to biomass. 

  1. Small non-domestic biomass – solid biomass including solid biomass contained in waste – less than 200kWh
  2. Medium non-domestic biomass – solid biomass including solid biomass contained in waste – 200-999kWh
  3. Large non-domestic biomass – solid biomass including solid biomass contained in waste – 1,000kWh 

As a guide based on the current rates, a country estate with main house and offices converting to a 200kW heating system would receive approximately £18,151 for the first year and a total of £441,015 over 20 years. A farm house with cottages and a holiday let using 100kW system would earn upwards of £9,075 annually and £181,500 over the duration of the scheme. The tariffs are reviewed every three months and are adjusted based on the increase or decrease in the Consumer Price Index (CPI).

As for a large commercial drying system with a boiler size of 1MW and 75% of run hours at full output, it would generate a significant RHI income over 20 years. For the first year alone, the RHI generated would be approximately £163,637. Over the course of the scheme, the income would equate to approximately £3,975,944. It is easy to see how the project would pay for itself many times over, whilst continuing to generate a healthy income for the business for 20 years, reducing the overall and ongoing carbon emissions significantly, as well as helping the UK achieve the targets as set out in the Paris Agreement.

ROI varies based on numerous elements including project cost, boiler size and usage. Figures quoted are an estimate average and is by no means a guarantee.

Very probably. Please contact us for a site survey.

Nowadays, biomass boiler technology is extremely reliable, and IU Energy recently installed the 4,000th ETA biomass boiler in the UK. With automatic fuel feeds which allow lorries to just drop a fuel load into a hopper and remote monitoring and control, a modern ETA biomass boiler is no more of a challenge to run than your gas boiler, but with massive environmental and cost benefits.

IU Energy is renowned for its 24/7 response and planned service packages. We are the ‘go to’ guys for fixing the installations of other companies when they find that they can’t get older plant going after a breakdown. By installing the very best technology and using our own engineers, we have a tight control over quality – which in this case means demonstrable reliability.

Yes, and that includes underfloor heating.

Yes – we have made installations in places like Crealy Theme Park & Resort and Hendra Holiday Park.

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