The Mayor of London Sadiq Khan has launched the first commercial boiler scrappage scheme in the UK to help reduce CO2 emissions in London by 2050.

The cleaner heat cashback scheme of £10m will help contribute 30-40% towards the cost of installing a low-NOx gas or LPG heating system that will provide a new high-efficiency heating system for businesses.

The cashback scheme also gives small to medium-sized enterprises (SMEs) the possibility of claiming an additional 35% towards installing hybrid systems,
ground source heat pumps or connecting to a local heat network.

The London boiler scrappage scheme is only to new applications until the 31st March 2020 or until the money runs out. This is not the situation if the funding has been committed earlier. Applicants that are successful will be able to complete the install and get their cashback after the 31st March 2020.

What Does the New Scheme Aim to Do?

The new scheme aims to:

  • Encourage small to medium-sized businesses to have replacement heating on combustion heating systems and save money on energy bills.
  • The scheme is intended to help reduce air pollution, reduce carbon emissions and improve the air quality in focused areas with cleaner heating systems.

Who Is Eligible and How to Apply?

Under the Cleaner Heat Cashback program, small businesses are entitled to at least 30% cashback. If they use Oil, Gas or LPG, their existing heating system must be at least 10 years old, but if their boilers are coal or biomass, they can be any age.

Existing Boilers must be at least 70 kW and replacement systems need to meet any of the following criteria:

  • Minimum of 90% efficiency.
  • Nat Gas or LPG Boilers.
  • Connect to a heat network.
  • Use renewable & low carbon technologies, such as solar thermal, air or ground source heat pumps & Combined Heat & Power systems that have 40mg/kWh of NOx emissions or less.

For any business to qualify for cashback, replacement heating systems must be installed by companies that have been listed on the system manufactures approved list.

The system is currently open for any type of SME but they must either own their premises, have their landlord’s permission and pay commercial rates, or be a tenant with building maintenance responsibility.

Businesses in Greater London are eligible for the Cashback scheme and can apply here.

Lynn of Helec Comments on the Initiative

“The commercial boiler scrappage cashback scheme is welcoming news for small businesses in London and the heating industry. A large majority of commercial companies in London are well aware of the advantages available from upgrading to the latest commercial highly efficient low NOx Combined Heat & Power solutions available from Helec providing a great opportunity to help reduce energy costs by generating onsite electricity whilst producing the much needed thermal heat for hot water & space heating. All of our Energimizer CHP units have low NOx emissions as standard for the Mayors required 40mg/kWh benchmark. The scheme will hopefully open up many financial benefits to a wider number of companies who look to embrace a CHP

To find out more, Contact Lynn with your question or call 01934 862264 today.