What is a Biomass ESCO and how does it work?
We have had a few questions about our Biomass ESCO's, so we thought it would be a good idea to explain how it works. Just to be clear, this is our unique version of a Biomass ESCO, there are many other variants.
A Biomass ESCO for new equipment would work like this:
- We agree the ESCO with the end user (specifications, heat use, install cost etc)
- We sign an ESCO agreement and peppercorn lease with the end user.
- We pay the installer to supply and install the equipment.
- The end user uses the heat generated by the system.
- We supply the fuel and charge the end user for the heat.
- We collect the RHI to pay for the system.
- After the system has been paid for we offer the end user a "call option" - this allows the end user to buy back the remaining years of the RHI, usually for less than one years RHI.
A Biomass ESCO for already installed and registered equipment would work like this:
- We agree a purchase cost for the installed equipment with the owner. The systems would normally need to be fully commissioned and registered for Non-Domestic RHI.
- We sign an ESCO agreement and peppercorn lease with the end user.
- We pay the owner for the equipment.
- The end user uses the heat generated by the system.
- We supply the fuel and charge the end user for the heat.
- We collect the RHI to pay for the system.
- After the system has been paid for we offer the owner a "call option" - this allows the end user to buy back the remaining years of the RHI, usually for less than one years RHI.
Our Biomass ESCO's are unique because they are flexible and they offer a buy-back option with the conditions for that buy-back option clearly defined at the beginning of the agreement. We think this is the fairest biomass ESCO you can find. For that reason we sometimes refer to is as our "Equitable ESCO".
We are interested to work on all sizes of Biomass ESCO from 50kW to multiple mW's.
If our Biomass ESCO sound interesting give us a call on 01524 297000 or simply send me an email on [email protected]
You have got nothing to lose and you may find that we can help.