Biomass boilers can be a cost-effective low-carbon heating option for commercial buildings in the UK, but whether they are the lowest-cost depends on multiple factors, including building size, heating demand, and available alternatives.
Is Biomass the Lowest-Cost Option for Commercial Heating?
✅ Yes, if:
- Your building has high heat demand (e.g., hotels, schools, warehouses, hospitals).
- You have space for fuel storage and delivery.
- You are in a rural or off-grid location where gas isn’t available or the gas connection is expensive.
❌ No, if:
- You have a small, well-insulated building suited for heat pumps.
- You’re in an urban area where district heating is an option and deliveries could be awkward.
- You lack space for fuel storage or want a low-maintenance system.
Cost Analysis of Biomass Heating for Commercial Buildings
Upfront Costs
- Commercial biomass boiler systems (for LTHW) range from £150kW to £200kW, depending on capacity and fuel type, steam system can be £250-£300/kW.
- Additional costs for fuel storage, flue systems, and Mechanical and Electrical services.
- Overall costs are generally lower than heat pumps.
Fuel Costs
- Biomass fuel (wood chips, pellets, or logs) is cheaper than electricity but can vary in price:
- Wood chips: ~£60-£140 per tonne (cheapest option for large-scale use)
- Wood pellets: ~£280-£320 per tonne (higher energy density, but pricier)
- Logs: ~£100-£150 per tonne (best for small-scale or rural use)
- Biomass fuel can be cheaper than gas, especially with rising fossil fuel prices.
Fuel cost comparison
Operational & Maintenance Costs
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- Biomass boilers require regular maintenance, including ash removal and fuel delivery.
- Higher servicing costs compared to gas or heat pumps.
- Automated systems reduce labor but increase initial investment.
Government Incentives & Grants
- The Boiler Upgrade Scheme (BUS) primarily supports heat pumps, and only residential
- Previously, the Renewable Heat Incentive (RHI) made biomass more attractive, but this ended in 2021.
- Some local grants and tax benefits (e.g., Super Deduction for capital investments) may still apply.
If you would like to discuss this or any other project then give us a call 0203 189 0665