Cost Savings & RHI

Compared to a year ago, the price of standard grade burning oil in December 2014 was 23.7 per cent lower while the price of gas oil was 24.1 per cent lower. However, with dwindling reserves in the North Sea, prices in the UK will inevitably rise. The Department of Energy and Climate Change projects fossil fuel price rise by 6-15% per year over the next 20 years. The table below shows the average costs to heat your premises by fuel type:

Fuel Price per unit kWh per Unit Pence per kWh
Wood Pellets £195 tonne 4,800 kWh / tonne 4.1p kWh
LPG (bulk) 49p ltr 6.6 kWh / ltr 7.4p kWh
Heating Oil 62p ltr 10 kWh / ltr 6.2p kWh
Natural Gas 4.3p kWh 1 4.3p kWh
Electricity 12p kWh 1 12.0p kWh

The Renewable Heat Incentive

The Heat Renewable Incentive (HRI) offered by the UK Government in order to facilitate the uptake of renewable heat technologies and reduce reliance on fossil fuels, started in November 2011 for commercial buildings and was the first of its kind in the world. More recently, the long awaited domestic RHI was launched which now provides a welcome payment to householders of 12.2p/kWh for those installing biomass boiler technology.

Savings/benefits example:

A 20kW wood pellet boiler supplying a single house, delivering 22,000kWh year and existing fuel cost £1,600 year.

  • Cost of boiler and installation from £12,000
  • Cost of pellets per year £917 (saving £683 fuel)
  • RHI 12.2p = £2,684 year…index linked, tax FREE
  • Total financial benefit £3,367 year
  • Payback time 3 years 4 months
  • 7 YEAR BENEFIT - £27,800
  • PLUS continued fuel savings after RHI payments cease

Payments are guaranteed for 7 years, are tax free, and are linked to the RPI so will rise over time. Payments are made based on quarterly meter readings

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A Little About Us

Farm Feed Systems was established in 1999 originally concentrating on the provision of Animal Feed Mills to farmers and specialist feed manufacturers throughout the world. The company continues to manufacture and support these products.

Contact Us

Farm Feed Systems Ltd
Foxes Bridge Road, Forest Vale Industrial Estate
Cinderford
Gloucestershire
GL14 2PQ
UK

Tel: 01594 825106
Fax: 01594 824567

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