The current use of solid biomass for heating in Lithuania and further development opportunities as well as environmental impact are analyzed in this paper. The solid biomass potential in 2011 made 1 442 ktoe, and 50.8% of this potential was used in the heating sector. he solid biomass potential should increase 14.6% by 2020 and 67% of this potential should be used in order to achieve the national renewable energy targets (60% for district heating and 80% for heating of individual houses). Achievement of national targets would allow to reduce total greenhouse gas emissions by 6%. he changes in the emissions of the main pollutants would be different. SO2, NOx, solid particles emissions would decrease by 13.1, 3.2% and 28.4%, respectively, however, VOC and CO emissions would increase by 1.3 and 8.2%. [ABSTRACT FROM AUTHOR]