Policy shift hits smaller plants
The UK government has decided not to extend financial support for small-scale biomass electricity generators after the Renewables Obligation scheme expires. Existing accredited plants will keep payments until their individual support periods end, with the first expiries due from 2027 and the last around 2037. Officials say continued backing does not offer value for money for billpayers.
What this means for households
Biomass electricity has formed part of the UK renewable mix, but the change mainly affects commercial operators rather than home owners directly. Industry groups have warned some smaller facilities could close, which may affect local waste-wood processing. For most households the bigger picture remains the same: compare tariffs regularly to keep bills down as policy and wholesale costs shift.
Where support still exists
Larger biomass projects will receive transitional arrangements. Homeowners looking at low-carbon heating can still access the Boiler Upgrade Scheme, which offers £7,500 grants for air- or ground-source heat pumps in England and Wales. Biomass boilers qualify only in limited rural off-gas-grid cases that meet strict emissions rules. Solar panels and battery storage continue to benefit from the Smart Export Guarantee.
Next steps for energy users
We recommend checking your current tariff against the wider market, especially if you have electric heating or are considering heat-pump upgrades. Compare deals on our energy pages to see what is available in your area.
