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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