Grants and Incentives
In recognition of the environmental and wider benefits associated with the uptake of biomass heating there have historically been a range of grants and other incentives available to support its uptake. The most relevant of these grants and incentives to public and community organisations are described below. Community and Voluntarily organisations are sometimes able to leverage funding from a number of sources (Climate Challenge, Leader etc, etc) and we have experience of up to 90% capital funding being awarded for individual projects. However, that is the exception rather than the rule!
Renewable Heat Incentive
From April 2011 it is proposed that a Renewable Heat Incentive (RHI) will be established which will provide a 20 year revenue payment to customers who introduce a biomass heating system. This incentive will apply to any installations completed after July 2009. The RHI will become the main method of supporting renewable heating systems and it is likely to replace all grant funding programmes used until now. The RHI is designed to ensure that the uptake of biomass heating proves financially attractive and as an accredited company using accredited products we can advise you on the potential impact that the RHI will have on your project based on the current proposals. It has not yet been confirmed whether the RHi will be able to work in tandem with other capital grant funding schemes but it is likely that it will not be possible to access both capital funding and the RHI. Based on the current proposals it is also likely that the RHI will prove to offer a more attractive overall funding package than any capital grant scheme.
The availability of the RHI combined with the increased pressure on capital budgets will make the provision of ESCO and Heat Supply contracts more widespread in the Public and Community Sector. We have developed solutions in both these areas which allow us to offer guaranteed renewable heat.
Capital Grant Funding
The HWEnergy team have considerable experience of applying for and advising on the range of different capital grant funding schemes that currently exist. The schemes that are currently open are described below. Please phone us to discuss the latest position on each of these schemes as they can change frequently.
CARES (Community Energy Scotland)
Non-profit organisations including the Public Sector and Community Organisations are eligible to apply for CARES funding for biomass projects. This grant scheme is administered by Community Energy Scotland. The maximum grant available is normally capped at £150,000 and the proportion of project costs being supported will vary depending on organisation and project type. We can put you in contact with your local CES Development Officer who will be happy to help you take forward your project.
LCBP Phase 2 (Carbon Trust)
For projects up to 300kw undertaken by an MCS accredited company, the Low Carbon Building Programme Phase 2 grant can offer up to 50% capital funding of the project costs. This grant is only available to not for profit organisations including the public and educational sectors. Projects undertaken by HWEnergy in the public and community sector will be eligible to apply for this grant. *** Please note that as of 24th May 2010 this grant is no longer available for new applicants.****
Interest Free Loans
There may be some interest free loans available from the carbon trust for the public sector and community groups. This situation appears to be somewhat fluid so best to contact us to discuss the latest position.
