District biomass heating: low cost green scheme

District heating is a community heating scheme where a centralised boiler is used to provide heat in the form of hot water or stream to a number of buildings, using a network of pre-insulated pipes.

Wood chip or wood fuelled heating offers housing schemes the lowest cost form of heating in comparison to oil, LPG, electricity and, sometimes, mains gas.

District heat diagram


Installations of district heating schemes cover a wide range of properties, including social and low cost housing, new housing developments, and existing groups of closely located properties.

Advantages of biomass district heating

  • Increased savings: Wood chip can deliver heat at around 1.5p - 3.5p kWh, versus oil or LPG at 3.5p kWh and electricity at 11p+ kWh.
  • Reduced environmental footprint: great for corporate social responsibility.
  • 20 years of RHI repayments guaranteed.
  • Biomass heating systems help to meet regulations codes during building or refurbishment projects.
  • Attractive payback and return on investment, offering a return on capital of 5%-25%.
  • Good PR: going green delivers a positive message to all stakeholders, and supports local employment in the wood fuel supply chain.
  • Easy metering: the heat usage within each dwelling is accurately delivered, separately measured, and easily billed for.

Dunster District Heating case studies

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