South Yorkshire Woodfuel

Contract Options

There are a number of different contract options available from biomass equipment and fuel suppliers, as well as Energy Supply Companies (ESCo's). Precise cost data for the various contract options is often confidential and varies on a case-by-case basis. Essentially the key questions in this decision process are:-

  • How much control do you want?
  • Do you want to purchase heat or fuel?

Choosing a Contract which suits your needs

Turnkey Installation

Services: Contractors simply install the fully functional heating system, all subsequent maintenance and management tasks are down to the user, fuel and servicing must be sourced independently.

Charges: The only costs incurred are for the installation and construction, all fuel, maintenance, service and repair costs will be paid in addition to the contract charges.

Turnkey and Service

Services: Contractors will install the heating system and carry out annual (or regular) services. Extended warranties are often offered with this contract. It is down to the user to source fuel and arrange repairs as necessary.

Charges: Installation costs and an annual service charge will be incurred; in addition to this the user will have to pay for fuel and maintenance as necessary. Note that it may be possible to buy the fuel as heat (kWh) rather than by the tonne.

Back-to-Back: turnkey, operations, maintenance and fuel supply

Services: The contractor installs the heating system and looks after the operations, maintenance and fuel supply. The user is involved in the day-to-day running of the system, although full support and guidance is offered by the contractor.

Charges: In addition to initial installation costs the user will pay a standing charge to cover general management and maintenance and will also pay pro rata for the heat output, per kWh.

Energy Management Contract

Services: An Energy Supply Company (ESCo) installs the system and manages the entire process, including operation, maintenance, fuel supply and day-to-day running. The ESCo remains the owner of the boiler, provides the heat and manages the system. ESCos can also supply the end product (i.e. heat), as opposed to the raw material for on-site energy generation. In this case, the user has no involvement in heat generation; they simply purchase metered renewable heat under an energy supply agreement.

The main control the owner of the building has over the fuel supply is through the heating contract by including clauses that oblige the ESCo to source a large percentage of the fuel locally.

Charges: An initial connection fee and ongoing payments for heat output as provided. This concept eliminates the need for high capital outlay as purchase of a new heating system is not necessary.

Split contract

Services: A split contract is offered between the boiler supplier and the fuel supplier. The boiler supplier installs and looks after the day-to-day running of the boiler and the fuel supplier provides the fuel and arranges deliveries etc. The main issue with this is that if the boiler feeding system jammed the user would have to liaise with the fuel supply company directly, and likewise any issues with the boiler would have to be resolved directly with the boiler supply company. Under an Energy Management Contract all such issues would have been resolved without the user becoming involved.

Charges: The boiler supplier will charge an initial installation fee and there will be ongoing service and maintenance costs. The fuel supplier will charge for sourcing and delivering, in addition to the actual wood fuel.

chosing a contract