FALLS in the prices paid for renewable energy have failed to deter industry from turning to clean systems according to experts in North Yorkshire.

This month has seen the introduction of changes to the Government's Renewable Heat Incentive, with prices paid to commercial operations for installing renewable heating systems halving over two years.

However, despite the changes, clean energy firm Think Renewable Energy says renewable energy and heat solutions are as popular as ever, with biomass set to be the key driver of its business growth in 2016.

The Harrogate-based business, which designs and installs commercial biomass and solar systems in Yorkshire and the North East, said the past 12 months had seen increased interest in wood-pellet burning boilers, particularly from the manufacturing and tourism sectors.

Managing director Chris Paddey said he expected two thirds of the firm’s growth to come from biomass next year, generating up to 7MW of biomass and reducing carbon emissions by 65,000 tonnes across Yorkshire and Teesside.

The firm has recently completed biomass projects for Lightwater Valley theme park near Ripon, Castle Howard stately home near York and a number of hotels in Yorkshire and the North East including the Orange Tree Hotel in Pickering.

Mr Paddey said: "Manufacturing firms use huge amounts of power to run their factories and machinery so it makes sense for them to generate as much as they can to keep costs low.

"Corporate buyers are also keen to reduce CO2 in their supply chain which is prompting their suppliers to consider green energy initiatives.

"Lightwater Valley, for example, expects to save 200 tonnes of CO2 and around £130,000 a year and sees biomass as a responsible thing to do and something that will really appeal to its customers."

Helen Shiels, business development manager at the Biorenewable Development Center, at York Science Park, which work across industry and research to harness value from waste products, said she is noticing two trends in the biomass market.

She said: "Two years ago businesses were actively taking out their gas or oil heating systems and replacing them with biomass systems.

"Now we so it as more of a replacement process. People are turning to biomass when their systems become too old or break. It has become more of a natural progression, which sees biomass as the natural outcome.

"Another big change in the industry is people getting wise to cowboys in the industry. Biomass has to have moisture levels of between 19 to 21 per cent to get maximum kilo watts per hour out of it.

"Some of the less scrupulous suppliers were spraying their biomass pellets with water to add weight, as they were selling it per tonne.

"Now, in a bid to prove themselves as reliable suppliers, people are selling biomass pellets per kilo watt hour, rather than weight. The industry is stepping up its game."