Boiler Scrappage Scheme
A new scrappage scheme for old boilers was announced in the 2009 Pre-Budget Report by Chancellor Alistair Darling. The aim of the new boiler scheme is to help households cut their energy bills, reduce CO2 emissions and support thousands of jobs in the energy industry.
The £50 million earmarked for the boiler scrappage scheme will save as much carbon as taking 45,000 cars off the roads and could also reduce a household’s energy bill by up to 200 pounds per annum.
About 125,000 households in England with working “G-rated” boilers would be eligible to apply, through the Energy Saving Trust, for a £400 voucher off the price of a new “A-rated” boiler or a renewable heating system such as a biomass boiler or heat pump. There are up to 3.5 million homes in England using these least efficient, lowest rated boilers.
Homeowners or landlords who rent homes are eligible to apply for the boiler scrappage scheme, but social landlords, housing associations and boiler installers do not qualify.
To take advantage of the boiler scrappage scheme, which is currently running only in England, homeowners should contact the Energy Saving Trust (ESF) with a quote from a qualified boiler installer. The installation cost would generally fall between £2000 and £3000. The trust will begin issuing the £400 vouchers from January 18. Homeowners will be expected to pay for the cost of the installation upfront and then claim back the £400 voucher discount. More information on eligibility criteria can be found on the boiler scrap scheme homepage.
A number of energy companies, including British Gas and nPower, also plan to match the Government’s boiler discount, allowing consumers to save up to £800 off the cost of a new modern energy–efficient boiler.