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Biomass Boiler Finance

Finance commercial biomass and wood pellet boilers from £15,000 to £300,000, for off-gas-grid sites, farms and rural businesses. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a biomass boiler?

Yes, biomass boilers are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £300,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Cost

£15k – £300k

Approval Speed

24–48 hours

Suits off-grid and rural sites

Rates From

5.0% APR

What would a biomass boiler cost per month?

£60,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical biomass boiler price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.4% APR
Term
12–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the boiler and fuel store outright

Finance Lease

Rate
From 5.0% APR
Term
12–84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 5.9% APR
Term
24–60 months
Deposit
None required
Ownership
Return at end
Best for
Off balance sheet, includes fuel store and feed system

Representative example

On a purchase price of £60,000: a 10% deposit of £6,000, then 48 monthly payments of £1,266 at 5.9% APR representative (fixed). Total amount payable £66,768, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
ÖkoFEN Pellematic Condens 32kW £15,000 – £22,000 Pellet Boiler
HERZ Pelletstar 60kW £25,000 – £35,000 Automated Pellet Boiler
Windhager BioWIN2 XL £20,000 – £30,000 Pellet Boiler
ETA Hack 100kW Wood Chip Boiler £45,000 – £65,000 Wood Chip Boiler

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Tax benefits

Biomass boilers generally qualify as plant and machinery for capital allowances, so a business can typically set some or all of the installed cost, including the fuel store and feed mechanism, against taxable profits through the Annual Investment Allowance or other first-year reliefs, subject to your total qualifying spend for the year. Confirm current treatment with your accountant, and check gov.uk directly for any current renewable heat funding rather than relying on a fixed figure.

Market context

The typical buyer is a business off the mains gas grid, most often a farm, rural hotel, estate, or manufacturing site with its own timber or agricultural waste to use as fuel, where the alternative is expensive oil or LPG heating. The investment case usually rests on avoiding an expensive off-grid fuel rather than beating mains gas, since biomass fuel and running costs are typically compared against oil or LPG, not gas. A fuel store and automated feed system add materially to the installed cost beyond the boiler itself, and fuel supply reliability, whether self-sourced or bought in as pellets or wood chip, is worth confirming before committing to a system size.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Is biomass only worth it for off-grid sites?
In most cases, yes. Where mains gas is available, biomass boilers are rarely cheaper to run, so the strongest cases are farms, rural estates and off-grid businesses currently paying for oil or LPG, or sites with their own free or low-cost fuel supply such as timber offcuts or agricultural waste. If you're on mains gas already, it's worth comparing biomass against an air source heat pump before committing, since running costs and installation disruption differ significantly between the two.
What's included in the installed cost beyond the boiler itself?
A fuel store (a hopper, silo or dedicated room depending on scale) and an automated feed system to move pellets or wood chip into the boiler are usually the biggest additional costs, alongside flue works and, for larger systems, a buffer tank. These elements can add a substantial share of total project cost on top of the boiler unit, which is why a full installed quote, not just the boiler price, should form the basis of any finance amount.
Can I use my own timber or agricultural waste as fuel?
Some biomass boilers, particularly wood chip systems, can run on self-sourced fuel if it's processed to the right size and moisture content, which can significantly reduce ongoing running costs for farms and estates with their own timber. Pellet boilers generally need bought-in, standardised pellets. It's worth discussing your intended fuel source with the installer at the specification stage, since the boiler and feed system need to be matched to the fuel type.
What deposit is needed for biomass boiler finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance leases and operating leases typically require no deposit. Because biomass installations often include significant building works for the fuel store, lenders will usually want a full, itemised quote covering boiler, store and installation before confirming terms. Where a deposit does apply, it's usually calculated as a percentage of the total invoice including installation, not just the headline equipment price, so it's worth checking exactly what the quoted deposit is based on before comparing offers between suppliers or lenders.
How quickly can I get biomass boiler finance?
Most applications are approved within 24 to 48 hours once accounts and a full supplier quote are provided. Larger systems with substantial fuel store construction may take longer to reach installation, though the finance approval itself is usually straightforward once the total installed cost is confirmed by the installer. Providing a full set of recent accounts and a firm, itemised supplier quote at application stage generally speeds up the underwriting process, since most delays come from lenders chasing missing paperwork rather than from the credit decision itself.

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