The Energy Saving Trust said households could save £470 a year on heating bills by changing their boiler to a biomass one.
However, E.ON stated the economic case for such community heating schemes is "poor", unless councils promise to buy heat produced this way for local authority buildings.
As such, households and businesses with conventional boilers may want to ensure they find the best provider of cheap gas to cut down on their energy bills by more traditional methods.
Speaking to Guardian Sustainable Business, a spokesperson for E.ON said a large number of energy customers would have to pledge to purchase heat from biomass systems for a number of years.
Until that day in the UK arrives, cheap gas could prove a more convenient way to lower energy bills.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.