How does the boiler scrappage scheme work?
Just weeks after chancellor of
the exchequer Alistair Darling announced the introduction of a new boiler
scrappage scheme as part of the pre-Budget report, the prime minister and the
climate change secretary have officially launched the campaign.
The announcement by Gordon Brown
and Ed Miliband has been welcomed by energy commentators and boiler
manufacturers and suppliers across the UK, as it will mean Britons struggling
during the winter cold snap with an inefficient boiler will be able to
benefit.
Indeed, the government hopes the
scheme will help some 125,000 households to upgrade to a more efficient boiler,
thereby reducing their annual utility bills, cutting the amount of energy they
waste and lowering their carbon emissions.
So just how will the boiler
scrappage scheme work?
Consumers set to be eligible for
the scheme are those who currently have a central heating system which is
powered by a G-rated boiler. Typically, these gas boilers are old and are also
the least efficient heating appliances found in homes. Under the campaign,
Britons will be able to upgrade their existing boiler to an A-rated appliance,
even if it is still working.
People wishing to take part in
the scheme will be able to apply through the Energy Saving Trust for a voucher
valued at £400 which can then be taken off the cost of having a more efficient
and modern condensing boiler installed.
And the discount will have been
paid off in less than two years, as the trust asserts a condensing boiler can
reduce the heating bills of households which previously relied on a G-rated
boiler by some £235. In addition to the financing savings, a condensing boiler
can also reduce energy wastage and carbon emissions due to its ability to
convert more of its fuel into usable heat than an older gas boiler.
Fraser Winterbottom, chief
operating officer of the Energy Saving Trust, says: "We know that people will
act on larger energy efficiency measures like replacing boilers when they are
both good for the environment and cost effective for them. They also need to be
able to trust the claims that are made around energy efficiency measures."
Mr Miliband adds the boiler
scrappage scheme is set to save the same amount of carbon equivalent to taking
around 45,000 cars off the road, as well as "permanently" reducing utility
bills, therefore demonstrating both environmental and economical benefits.
And the voucher can not only be
used to discount the cost of a new boiler.
Indeed, under the terms of the
scheme, the government is keen to encourage Britons to embrace renewable energy
technology, by allowing them to use the voucher for money off the cost of green
central heating systems such as air of ground source heat pumps or biomass
boilers.
As well as helping people save
money through reduced energy bills, such technology can significantly reduce
carbon emissions and any harmful impact a property makes on the environment.
There has already been a positive
response from many sector commentators, with Scott Byrom, utilities manager at
moneysupermarket.com, stating it is good that homeowners will now be able to
benefit while temperatures are at their coldest. However, he urged consumers to
act fast if they wish to take part in the scrappage campaign.
Meanwhile, Gareth Kloet, head of
utilities at Confused.com, echoed the comments, noting the scheme has come at a
good time, with the National Grid recently issuing a warning for people to ease
up on fuel, for only the second time in 30 years.
"The more people with
fuel-efficient boilers, the better," he added,
Indeed, now may be the perfect
time for Britons to bring their central heating systems up to date with a well
timed boiler upgrade.
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