Under the scheme, businesses will receive a free commercial biomass boiler, including free installation, maintenance and servicing for a period of 20 years. VG funds the deal by claiming the Renewable Heat Incentive earned from the system.
VG says the incentive is especially beneficial for businesses who have high daily heating demands, are looking to save on their energy costs but are finding it difficult to secure the required funding.
Under the scheme, VG Energy will manage the project and perform a site survey, find a suitable design, enter into a lease agreement with the customer where VG pays the legal costs, supplies the biomass boiler and training and pays to service and repair the system.
VG commercial director Nick Bowmar said: "Heating represents the largest part of UK business energy bills, on average it equates to 55 per cent of an organisations overall annual energy cost. Switching to a biomass system can therefore result in significant savings on heating, ranging from an impressive 30-70 per cent, where properties are on oil or LPG.
"Customers are looking for alternative ways to cut heating bills. We are therefore delighted to introduce this new scheme and to provide a no cost, no risk incentive for businesses to switch to a cheaper wood fuel source.
He added: "There is not catch. To allow us to provide a free biomass boiler, we claim the Renewable Heat Incentive (RHI) that is earned from the system to cover the cost of the equipment, the installation, and the costs of the servicing and maintenance for 20 years.
The RHI was created to encourage businesses to switch to biomass as a renewable, sustainable heating source, providing quarterly payments for 20 years for commercial applications.
VG Energy works with biomass boiler manufacturers, such as Heizomat, Viessmann and ETA boilers.