Biomass Economics

Biomass can be a very cost effective renewable energy option – but only if your fuel supply is the right price!

Biomass return on investment depends on some important factors:

  • What is your current heating fuel? Payback is much improved if you are currently using oil or solid fuel. Returns are less if you currently use gas for heating and hot water.
  • A log burner with integral water boiler generally has a better return than a wood pellet boiler. But remember the extra fuelling and cleaning for log burners.
  • Grants are available for pellet stoves, but not for log burners.
  • As oil, solid fuel and gas prices increase, your biomass return will improve.

The table below shows typical returns for both pellet and log stoves assuming average fuel prices and appliance efficiencies.

Your Current Heating Fuel Typical return on investment (% per year)
Log burner Pellet boiler*
Gas 20% 12%
Oil 30% 20%
LPG 30% 20%
Coal/anthracite 25% 18%
*includes grant

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