Last week, London’s Mayor, Sadiq Khan, launched the Cleaner Heat Cashback scheme to help reduce emission rates in the capital.
What is the Cleaner Heat Cashback Scheme?
The scheme is aimed at small and medium enterprises (SMEs) throughout Greater London. These businesses will be encouraged to apply for money – from a £10 million-pound fund – towards replacing old boilers in their premises.
Businesses will be offered 30% cashback on replacement gas or LPG boilers and 35% cashback on renewable heating systems. There’s an an additional 5% for businesses in Air Quality Focus Areas, where carbon emission levels are highest. Allocation of funds will be on a first come, first served basis so time is of the essence.
Who is Eligible?
Eligible SMEs must be based in London and either own their building, have responsibility for it, or their landlord’s permission to replace the boiler.
The existing gas, oil or LPG boiler must run have a minimum size of 70 kW and be more than 10 years’ old. Coal or biomass boilers or any age can be replaced as part of the scheme.
Replacement gas or LPG need to be at least 90% energy efficient and renewable heating technologies, such as heat pump or solar thermal, will be encouraged, alongside hybrid systems and connection to a heat network.
What are the Main Benefits?
- The initiative signals a clear political determination to tackle poor air quality
- Emissions will be reduced
- Modern heating systems represent significant savings in day-to-day running costs so businesses will be able to reduce their energy bills by up to 25%
- The scheme will act as a catalyst to encourage businesses to consider additional improvements and take more responsibility for their energy usage
- There will be more work for accredited installers in the Greater London area
What’s Been the Response from Industry?
Not surprisingly, the response from industry has been positive.
Vaillant highly commends the initiative and their commercial and renewables sales director, John Bailey, said in a recent article in HM Plumbzine, that he’d be keen to see a national roll-out of the scheme to include other cities across the UK.
John Newcomb, Chief Exec. Of The Builders Merchant Federation is pleased to see that previous incentives, for residential properties are now focusing on the commercial sector and that accredited installers as well as eligible businesses will benefit.
What to do Now
The scheme will close for new applications once the funding has been allocated or by 31 March 2020, so if your customers fit the criteria, spread the word – it could present a good business stream for heating installers in London.
Applications for the fund need to be made by the business, online. Click here for details and FAQs. There’s also a Cleaner Heat Cashback helpline: 0808 108 9414.