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Last updated: 20 May 2022

How Much Does a Biomass Boiler Cost(2022)?

Save on Your Energy Bill with Biomass Boilers

Biomass boilers are a great option for homeowners who are looking to make their homes eco-friendly while still being economical. And thankfully, there are biomass boiler grants you can benefit from that save you up to £5,000.

This makes biomass boilers generally a cheaper option compared to other heating systems like oil-fired or gas-fired ones. A biomass boiler is better in terms of funding options, fuel costs, and environmental impact.

For instance, just switching to a biomass boiler can save you up to 40% on your energy bill and save the environment as much as 9 tons of carbon emissions yearly. Your investment in a biomass boiler pays off by increasing the value of your home, saving money on energy bills, and making your household future proof.

Boilers Cost Comparison
Type of Boiler Average Initial Cost of Boiler (£) Cost of Fuel (p)

CO2 Emissions 


Wood Pellet £14,999 3.0p/kWh 766kg
Oil Fired £1,999 9.3p/kWh 9,219kg
Gas Fired £2,999 6.4p/kWh 6,406kg


As with most heating products, the final price always depends on many other factors other than the price of the boiler itself. These factors include the amount of energy needed to heat the entire house and the overall size of the house.

As the cost of a biomass boiler varies depending on the house, we highly recommend that you find and compare biomass boiler prices from local suppliers before making your decision. This allows you to find the best price and maximise your savings at no obligation before investing. Get started to get offers at no cost.

Biomass boiler cost - cheaper option for heating your house with bio fuel

What Factors Affect Biomass Boiler Prices?

It is important that your boiler fits your own heating demands and your house. So naturally, you can expect that the cost of your biomass boiler and installation will be specific to you. Nonetheless, you can generally expect the full cost to range between £4,000 and £21,000.

There are several specific factors that will greatly influence the cost of a new boiler:

  • Installation costs
  • Integration of new boiler with the existing system
  • Biomass storage capacity
  • Output size
  • Other additional features

The largest price changes are mainly dependent on the size and the level of automation of the chosen boiler. Boilers that feed themselves automatically are logically a more costly version than those that require manual feeding.

To get an idea of the price range, an automatically-fed pellet boiler costs between £10,000 and £20,000, including the boiler installation cost and delivery. While a manually-fed one can cost between £4,000 and £10,000.

A smaller domestic biomass boiler starts at £5,000, and an ordinary commercial installation aimed to heat two or more buildings can cost around £20,000. Ultimately, the cost of your biomass boiler will vary depending on your household needs.

These prices can seem quite high, especially when you consider that you can get a gas boiler for around £2,000. However, the startup costs don't tell the entire story. This is due to the fact that once installed, a biomass boiler can be cheaper to run than gas, oil and electricity. Also, with a grant from the Boiler Upgrade Scheme, you can save as much as £5,000.

Understanding where you can save your money is important when investing in home improvements, such as a biomass boiler. That’s why we recommend you do your research properly to ensure you’re saving the most money. One way to maximise your savings through grants is by comparing up to 4 tailor-made boiler offers available near you.

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What Are the Biomass Boiler Installation Costs?

Depending on the boiler model, you can generally expect to pay between £4,000 and £21,000.

However, when it comes to the costs of installing a biomass boiler, they are highly dependent on the type of fuel the particular boiler is going to use to generate heat. A biomass boiler is designed to use only a few main types of biomass fuel (pellets, chips, logs).

Also, when installing a biomass boiler, you will need to consider that this system is typically larger than the average boiler as you will also need a storage area for the biomass fuel. Therefore, you may need to make some home adjustments to accommodate them depending on what heating system you currently have.

You also need to consider that if a lot of work is needed to integrate the biomass boiler into your existing system, then it will result in increased prices.

What Type of Biomass Fuel Is Best For You?

Biomass boilers run on various types of wood fuel such as wood pellets, logs and wood chips. The fuel choice is often made by taking into account availability of the fuel source, storage space and individual needs.

The quality of biomass fuel is fundamental for long functioning and efficiency of your boiler. It has to be seasoned before chipping, it should have the right size and contain a minimal amount of moisture.

Three Main Types of Wood Fuel:

  • Wood pellets
  • Wood chips
  • Logs


Wood Pellets Biomass Fuel

Wood pellet boilers are the most common type of domestic biomass fuel and can be packed and delivered in bags or bulks. Buying larger quantities at once is often cheaper than otherwise. You can expect to save money on your bills by switching to wood pellet heating, but how much you save depends on the type of replaced fuel and the cost of pellets from a particular supplier.

Wood Chips Biomass Fuel

Most of the wood chips used for heating in UK homes are UK-sourced. Wood chips are more expensive when it comes to transportation as they are less dense compared to pellets. In addition, they are only appropriate for homes that have space to store them.

Both pellets and wood chip boilers are often automated and it is not necessary to fill them manually. Another advantage of wood chips is less ash and smoke residue.

There are many other advantages and disadvantages of biomass boilers you need to consider, before choosing the right type for your house. 

Logs Biomass Fuel

Log wood is a source of energy relatively stable in price. Logs and other types of wood fuel are the first choices for those who are conscientious of their impact on the environment.

It is possible to minimise your emissions by burning dry, split wood. In addition, burning logs with high moisture content will reduce the boiler’s heat output and waste more energy, so you will have to use more in order to warm up space.

Biomass boilers can work on either a manual or automatic based system. Manual biomass boilers are cheaper, but you have to take into consideration potential labour costs. Wood chips and pellets can be fed into a boiler automatically from a larger hopper situated nearby.

On the other hand, logs require manual feeding and they are often more suitable for people with access to an abundant supply of wood.

Biomass Fuel Prices - What Is the Cheapest Option?

Biomass boiler costs

For biomass fuel pricing, have a look at the table below. It is important to remember that these are only estimations and prices can vary greatly depending on the supplier and delivery costs. Installation costs are not taken into account in the table.

Some boilers can be designed for wood pellets, straw pellets and also wood chips, however, log boilers are usually designed only for that type of wood fuel.

Average price of biomass fuels and boilers

Prices of Biomass Fuel for Boilers
Type of Biomass Fuel Price per Tonne (£) Price for a Boiler
Wood Pellets £245 From £12,999 (Automated) From £4,000 (Manually-fed)
Logs £99 From £7.999 (Manual)
Wood Chips £59 From £7,999 (Automated) From £4,000 (Manually-fed)
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The best way to keep the costs of fuel low is by buying in bulk in the winter. The most popular biomass fuel is wood pellets. An average house needs approximately 2-5 tons of wood pellets during the winter season.

Using renewable energy as a heating source is not just environmentally friendly but can also significantly reduce your electricity bills when you replace your old heating system.

Average running costs and carbon emissions of different fuel types per year

Wood Fuel Compared to Other Heating Types
Type of Fuel Coal Oil Natural Gas Electricity LPG Wood Pellet Wood Chips
Approximate Running Costs (£/year) £1,499 £1,669 £999 £2,690 £1,920 £869 £895
CO2 Emissions (kg/year) 13,541kg 9,219kg 6,406kg 10,184kg* 7,663kg 766kg 550kg

*When sourced from fossil fuels

As shown in the table, choosing boilers fuelled with wood pellets or chips can bring a lot of savings. A further explanation is displayed below with percentages of your potential savings if a particular type of heating fuel is replaced with a biomass heating system.

For example, if you are currently using coal to heat up your home when replaced with biomass, you may be able to save up to 15% off your heating bill.

Savings on Fuel in Case of Replacement for Biomass
Type of Fuel Natural Gas Coal Oil LPG Electricity
Potential Heating Bills Savings (%) 3% 15% 20% 23% 40%

Biomass Boiler Funding Options

When compared to different types of boilers, biomass boilers (wood-pellet) require higher initial costs, but also have an option of governmental funding unlike the other two.

With the rapidly increasing prices of oil, the demand for alternative options is growing. Even though the price of wood fuel is not very constant and is influenced by many external factors, it still is one of the cheaper options when fuelling your boiler.

There are biomass boiler grants if you are looking for support for your biomass boiler investment.
One of which is the Boiler Upgrade Scheme which was established in April 2022. It assists households with the initial costs of installing boilers. This financial scheme is funded by the UK government and aimed at encouraging domestic consumers to invest in renewable heating sources such as biomass heating systems.

With this scheme, you can save £5,000 on starting costs for your biomass boiler! You can also save up to 14.5 tonnes of carbon dioxide emissions a year when replacing a traditional solid fuel boiler with biomass boilers.

Finally, if you are over the age of 60 or are receiving certain benefits, you could qualify for a 5% VAT reduction on your wood-fired boiler. You can either get a reduction on the whole product or only on the installation costs — this depends on a few price factors, which you can read on the government's website.

Considering a Biomass Boiler That’s Energy-efficient and Economical?

Now that you have understood the potential of biomass boilers in not only reducing our carbon footprint but also saving on your energy bills, it is a good time to invest in one. So, if you are thinking about purchasing a biomass boiler, don’t hesitate. With so many options, there’s never been a better time to get a quote for your renewable energy solution.

But before buying a biomass boiler, you need to find the best one suited to your home’s energy-saving needs to maximise your savings.

Our experts at GreenMatch will help you make an objective decision by sending you up to 4 offers tailormade to your home’s requirements from suppliers operating near you. You can then weigh up your options, lock in the best deal, and maximise available grants.

Just select your region.


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