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The use of biomass as an energy source can have numerous benefits personally, locally, nationally and globally. Many countries, including the UK, offer a range of grants and incentives to encourage its use and development.
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 | For convenience grants and support are divided into those that help support the purchase, installation or development of equipment, those that support the fuels supply chain, and those that provide consultancy and advice.
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Schemes to support uptake and new installations
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
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Carbon Trust Biomass Heat Accelerator |
A technology accelerator project from the Carbon Trust announced in April 2006, with a £5m budget over 5 years. It aims to examine and address the key barriers to the uptake of biomass in the UK. |
Yes |
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Yes |
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Carbon Trust Energy Efficiency Finance |
Flexible loans for SMEs to allow investment in energy saving equipment. |
Yes |
Yes |
Yes |
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CO2Sense Investment Fund |
Investment funding will normally be provided on a 'revenue share' basis, where the funding is repaid within a defined period, plus a small royalty on related product sales / savings. |
Yes, within Yorks & Humber |
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Community Sustainable Energy Programme |
The Community Sustainable Energy Programme provides funds to community-based organisations for feasibility studies and the installation of microgeneration technologies |
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Yes |
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Energy Entrepreneurs Fund Scheme |
DECC launched the 1st phase of the Energy Entrepreneurs Fund scheme on 23 August 2012. This is a competitive funding scheme to support the development and demonstration of innovative, new technologies, products and processes in the areas of:
Energy efficiency and building technologies
Power generation and storage
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Yes |
Yes |
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Yes |
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E.ON Sustainable Energy Fund |
A grant from E.ON for community groups and not for profit organizations planning to install sustainable energy projects |
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Yes |
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Energy Saving Scotland - small business loans (formerly Loan Action Scotland) |
The scheme allows a business to borrow between £1,000 and £100,000 interest-free and repayable up to 4 years and would be used to help a business to reduce its energy consumption, saving both money and CO2. |
Yes |
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Enhanced Capital Allowance |
Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. |
Yes |
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Feed-in tariffs |
A mechanism to support small scale generators of renewable electricity, up to 5 MWe to complement the Renewables Obligation for large scale generators. Applies to AD but not currently solid biomass. |
Yes |
Yes |
Yes |
Yes |
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Forestry Micro-Enterprise Grant |
Grants of between £2,500 and £25,000 will be available towards buying new machinery or equipment, building handling or storage facilities or installing woodfuel systems. It is funded by the Rural Development Programme for England and is administered jointly by the Forestry Commission and the East Midlands Development Agency. If you are interested please call Anne Garner on 01673 843461 for a prospectus. |
Yes |
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East Midlands Forestry Micro-enterprise Grant |
Grants of between £2,500 and £25,000 will be available towards buying new machinery or equipment, building handling or storage facilities or installing woodfuel systems. |
Yes |
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Rural Development Programme |
The RDP is a significant sum of European funding for the development of rural areas. Funding is available for a wide range of activities including the development and diversification of land based businesses and the installation of biomass boilers. Schemes are administered differently in different areas of the UK:
England
Northern Ireland
Scotland
Wales |
Yes |
Yes |
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Renewable Heat Incentive |
The Renewable Heat Incentive (RHI) opened for applications in November 2011, and provides financial assistance to generators of renewable heat, and producers of renewable biogas and biomethane.
RHI is now also available in Northern Ireland
Phase 1 is for non-domestic installations, with support for domestic to follow in phase 2, expected Summer 2013. |
Yes |
Yes |
Yes |
Phase 2 |
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Renewable Heat Premium Payments |
The Renewable Heat Premium Payment scheme is a government scheme that gives money to householders to help them buy renewable heating technologies – solar thermal panels, heat pumps and biomass boilers. As from next year, the Renewable Heat Incentive will expand to cover the domestic sector and the Green Deal will come into force, so this is a short-term scheme making one-off payments that will also allow us to learn more about what people think of these technologies and how they perform in a variety of conditions. |
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Yes |
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Scottish Community and Householder Renewables Initiative |
New schemes for communities and households in Scotland; follow link for details |
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Yes |
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Yes (discontinued)
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Wood Energy Business Scheme |
A Forestry Commission Wales initiative which aims to establish a network of wood fuelled installations across Wales, producing clean heat and electricity and strengthening the timber supply chain. |
Yes |
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WRAP Anaerobic Digestion Loan Fund |
The ADLF offers direct financial support to organisations building new AD capacity in England. It aims to ensure that food waste is diverted from landfill or from other, less environmentally sustainable operations, up the waste hierarchy. The purpose of the loan fund is to leverage or top up private sector funding (not to replace it) or to materially accelerate the projects. |
Yes |
Yes |
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Schemes to support fuel production and supply chains
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
Energy Crops Scheme |
The Energy Crops Scheme provides establishment grants for land owners in England to plant energy crops including short rotation coppice (SRC) and miscanthus |
Yes |
Yes |
Yes |
Yes |
Forestry Commission Grants |
A portfolio of grants managed by the Forestry Commission. Aims to help promote the stewardship of existing woodlands, the creation of new woodlands, and increase benefits to the public. The grant schemes vary across the UK:
England
Northern Ireland
Scotland
Wales
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Yes |
Yes |
Yes |
Yes |
East Midlands Forestry Micro-enterprise Grant |
Grants of between £2,500 and £25,000 will be available towards buying new machinery or equipment, building handling or storage facilities or installing woodfuel systems. |
Yes |
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Rural Development Programme (RDP) |
The RDP is a significant sum of European funding for the development of rural areas. Funding is available for a wide range of activities including the development and diversification of land based businesses and the installation of biomass boilers. Schemes are administered differently in different areas of the UK:
England
Northern Ireland
Scotland
Wales
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Yes |
Yes |
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Single Payment Scheme |
Payments to farmers based on the total farm size, rather than specific crop areas. |
Yes |
Yes |
Yes |
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Wetland Biomass to Bio-Energy Competition |
A SBRI (Small Business Research Initiative) competition from DECC to develop and demonstrate a bioenergy process that optimises wetland management activities and utilises the biomass arisings |
Yes |
Yes |
Yes |
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Woodfuel East Strategic Investment Support Programme |
A grant programme from Woodfuel East to support woodchip production, storage, drying etc. for fuel. |
Yes |
Yes |
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WRAP |
Capital grants to SMEs to help promote the recycling of a number of materials, including food waste processing. |
Yes |
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Schemes to provide advice, consultancy and other support
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
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Carbon Trust Energy Survey |
Free energy audit for businesses with an annual energy spend of more than £50,000 |
Yes |
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Community Sustainable Energy Programme |
The Community Sustainable Energy Programme provides funds to community-based organisations for feasibility studies and the installation of microgeneration technologies |
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Yes |
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Energy Saving Trust |
Information and advice though local Advice Centres |
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Yes |
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Yes |
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Highlands and Islands Community Energy Company |
The Highlands and Islands Community Energy Company has now become Community Energy Scotland, a new Scottish Charity set up to support communities throughout Scotland to develop sustainable energy projects. The work and staff of HICEC have now transferred to this new company, providing free advice and support to community groups for renewable energy projects in the Highlands and Islands of Scotland. |
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Yes |
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Lightfoot Wood Stove Project |
The Lightfoot Wood Stove Project is based in Mid Wales and designed to try to effect behavioural change in householders in an attempt to use Woodfuel, in this case logs, as efficiently as possible. The aim of the project is to raise awareness of best practice when using Woodfuel in a stove, to get the most out of the woodfuel (with the added cost-savings benefits) and reduce the use of fossil fuels. |
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Yes |
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Scottish Community and Householder Renewables Initiative |
In Scotland this scheme has been replaced by separate grants for communities and householders. Please follow the link in the left column for full details |
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Yes |
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Yes |
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Scottish Energy Efficiency Office |
SEEO business advisers can help small to medium sized businesses make best use of the many energy and resource efficiency schemes provided by government funded organisations. |
Yes |
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South West Cleantech Co-investment Fund |
Available in the South West of England only
The fund will provide business loans which will, subject to certain parameters, match £ for £ new equity capital being issued to new shareholders in an eligible company. A key innovation of the fund is that the loan will only be provided alongside a pre-approved equity investor ("Keystone Investor"). The pre-approval process will require the keystone investor to demonstrate:
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Yes |
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West Midlands Local Authority Low Carbon Economy Programme |
Available in the West Midlands only
The programme lasts until December 2011, and includes a range of support:
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Yes
LAs in West Midlands |
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Applied Research, Development and Technology Transfer
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
Carbon Trust Applied Research Programme |
Applied research grants for UK businesses and research institutions to support the development and commercialization of carbon reduction technology. |
Yes |
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EU Seventh Research Framework (FP7) |
The Seventh Framework Programme (FP7) is a core EC funding programme for research within the EU. |
Yes |
Yes |
Yes |
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Schemes to support large scale biomass use and electricity generation
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
Climate Change Levy |
CCL is a tax on the use of energy in industry, commerce and the public sector. Electricity generated from new renewable energy and good quality CHP schemes are exempt. |
Yes |
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Yes |
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Carbon Reduction Commitment Energy Efficiency Scheme |
The Carbon Reduction is a mandatory carbon emissions trading scheme for all organizations using more than 6,000 MWh per year of electricity |
Yes |
Yes |
Yes |
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EU Emissions Trading System |
The EU Emissions Trading Scheme (EU ETS) puts a cap on the carbon dioxide (CO2) emitted by business and creates a market and price for carbon allowances. |
Yes |
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Feed-in tariffs |
A mechanism to support small scale generators of renewable electricity, up to 5 MWe to complement the Renewables Obligation for large scale generators. Applies to AD but not currently solid biomass. |
Yes |
Yes |
Yes |
Yes |
Renewables Obligation |
Under the Renewables Obligation (RO) licensed electricity suppliers are required to source a percentage of the electricity supplied from eligible renewable sources, including both dedicated and co-fired biomass. NIRO (Northern Ireland Renewables Obligation) has different banding levels from the rest of the UK. |
Yes |
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WRAP Anaerobic Digestion Loan Fund |
The ADLF offers direct financial support to organisations building new AD capacity in England. It aims to ensure that food waste is diverted from landfill or from other, less environmentally sustainable operations, up the waste hierarchy. The purpose of the loan fund is to leverage or top up private sector funding (not to replace it) or to materially accelerate the projects. |
Yes |
Yes |
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Schemes closed to new applications
| Scheme |
Notes |
Availability |
| Businesses |
Charities / Not for Profit |
Public Sector |
Private individuals |
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Bio-energy Capital Grants Scheme |
Closed 31st March 2010 The purpose is to promote the efficient use of biomass for energy. This scheme supported the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors. "Community" can include local authorities, schools, social housing etc |
Yes |
Yes |
Yes |
Yes |
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Bio-Energy Infrastructure Scheme |
A grant scheme to help develop the supply chain for woodfuel, energy crops and straw in England. |
Yes |
Yes |
Yes |
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Community Energy Programme |
A programme to promote schemes to provide heat and/or power to a number of buildings from a central source. |
Yes |
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Yes |
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Community Renewables Initiative |
To help local people and organizations devise and implement small scale renewable energy developments. Provides free advice and training. |
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Yes |
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Yes |
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DTI Technology Programme |
Designed to stimulate research and development between UK based firms and between UK based firms and the science base. The current call has a budget of £50m and is targeted at seven Technology Priority Areas, including Renewable Technologies and Technologies for Environmentally Friendly Transport. The work of the programme has been taken over by the Technology Strategy Board |
Yes |
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East of England Development Agency's Cut Your Carbon Campaign |
Cut your Carbon is a regional initiative, led by the East of England Development Agency (EEDA), with the goal of helping communities respond to climate change by reducing their carbon emissions. |
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Yes |
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Energy Aid Payments Scheme |
EU payments for crops grown for use in the production of energy (heat electricity or transport fuels) on non-set-aside land. Managed through the Rural Payments Agency. |
Yes |
Yes |
Yes |
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Farm Business Development Scheme |
A business development scheme for farmers in Scotland to allow diversification into alternative agricultural production, retailing of processed agricultural products, processing of forest products, etc. |
Yes |
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F.I.R.E. |
The aim of FIRE is to help SMEs rise to the challenges facing them as the European Renewable Energy Sector (RES) grows. Currently the RES is the fastest growing sector in Europe. |
Yes |
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Invest NI SME Energy Grant Scheme |
The Invest NI small to medium sized enterprise (SME) Energy Grant Scheme provides financial aid to businesses that wish to adopt energy efficient practices, install energy efficient technologies or implement energy efficient projects. |
Yes |
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Low Carbon Buildings Programme |
A UK wide (excepting the Channel Islands and Isle of Man) programme launched 1st April 2006 to replace the Clear Skies and Solar PV grant schemes to support microgeneration technologies, including bio-energy and energy efficiency. |
Yes |
Yes |
Yes |
Yes |
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Low Carbon Communities Challenge |
A 2 year scheme to provide financial and advisory support to 20 'test-bed' communities in England, Wales and Northern Ireland seeking to cut carbon emissions |
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Yes |
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Low Carbon Infrastructure Fund |
A fund to help support the development of district heating infrastructure in new housing developments and refurbishment of existing homes |
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Yes |
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Scottish Biomass Heat Scheme |
The SBHS provides grants for the installation of biomass heating systems in business premises and district heating demonstrators. The SBHS will support for small-medium sized enterprises, and is restricted to heat-only biomass applications. |
Yes |
Yes |
Yes |
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Scottish Biomass Support Scheme |
The scheme provides grants to support both supply chain, and heat and CHP installations. |
Yes |
Yes |
Yes |
Yes |
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Scottish Community and Householder Renewables Initiative |
New schemes for communities and households in Scotland; follow link for details |
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Yes |
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Yes |
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Scottish Forestry Grants Scheme |
Grants for woodland expansion, restocking and stewardship. |
Yes |
Yes |
Yes |
Yes |
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Short Rotation Coppice Challenge Fund |
A support programme for the establishment of willow short rotation coppice for heat, CHP or power generation in Northern Ireland. |
Yes |
Yes |
Yes |
Yes |
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UK Emissions Trading Scheme |
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Yes |
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Woodland Grant Scheme |
The WGS has been replaced in England by the English Woodland Grant Scheme suite of grants. In Wales the WGS will close to new applications on 31st August 2006 and be replaced by Better Woodland for Wales. In Scotland it has been replaced by the Scottish Forestry Grants Scheme. |
Yes |
Yes |
Yes |
Yes |
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