Scottish Biomass Heat Scheme
A third round of the Scottish Biomass Heat Scheme has been launched on 25 November and is now open for applications.
The Scottish Government aims to build a commercially viable, diverse renewable heat industry in Scotland in support of our 2020 renewable energy target of 11% of heat demand to come from renewable sources. With this in mind, the Scottish Government has launched the Scottish Biomass Heat Scheme.
The Scottish Biomass Heat Scheme is Scotland-wide, with funding of £3.3 million from April 2009 to March 2011. It builds on the success of the Scottish Biomass Support Scheme which ran in the financial year 2007/08. This time however, the scheme will provide grants for installation of biomass heating systems in small-medium scale enterprises (SMEs).
The Scottish Government is also keen to encourage the development of district heating, and would particularly welcome applications for district heating demonstrators from private developers.
Key drivers are:
- to increase take-up of renewable heat use by SMEs;
- the strategic transformation of the Scottish woodfuel market;
- supporting rural economies by creating sustainable green jobs;
- contributing to renewable energy targets;
- maximising carbon savings.
If you are interested in applying for a grant under the Scottish Biomass Heat Scheme (SBHS), we strongly recommend you contact Forestry Commission Scotland's Regional Biomass Advice Network to discuss your project at an early stage. This initial enquiry form will help their Biomass Development Officers give you the best possible guidance on your project's eligibility at an early stage or give you details of other sources of funding and support that are available.
Potential applicants should read the Guidance Notes before completing an Application Form. Where multiple applications are being submitted applicants must complete a Multiple Application Summary Sheet.
Further information is available via the http://www.usewoodfuel.co.uk website or in the attached guidance.
The results of the first and second rounds of support via the Scottish Biomass Heat Scheme are available.
Renewable Heat Incentive
The Scottish Government is aware of the growing demand for biomass, and is working with the UK Government to put support mechanisms in place. The UK Government announced on 15th July 2009, as part of its Renewable Energy Strategy, that it will launch the Renewable Heat Incentive (RHI) in April 2011 to provide long-term support for renewable heat. It also announced that projects completed after 15th July 2009, will be able to apply for the RHI and it would consult on all aspects of the RHI mechanism by the end of the year.
Scottish Government Grant Support
In the transitional period between July 2009 and introduction of the RHI, existing grant schemes will remain in place. However, in order to comply with European State Aid rules, grants paid in this interim period may need to be repaid before receiving RHI payments. The Scottish Government is engaged in this process and will aim to ensure that when arrangements for the RHI are finalised, that any project which has been awarded grant is not adversely affected if they wish to apply for RHI.
In this transitional period, the Scottish Government is aware that there will potentially still be demand for support for heat only projects. In particular, the Government is interested in the potential for larger-scale projects and district heating demonstrators, especially those which do not have access to existing support mechanisms. In order to establish what the demand is for funding for larger-scale heat only projects the Scottish Government is seeking Expressions of Interest from all types of organisations considering biomass heating projects, to inform decisions on ongoing support for biomass for heating.