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Mayor of London launches new £10m boiler scrappage scheme for SMEs

Workplaces in the UK capital London account for around 40 percent of the city's greenhouse gas (GHG) emissions. In a bid to improve the capital’s air quality, the Mayor of London, Sadiq Khan, has launched a new GBP10 million boiler scrappage scheme. The first of its kind in the UK, the Mayor’s Cleaner Heat Cashback scheme will provide between 30 to 40 percent cashback to small and medium-sized businesses (SMEs) when they replace older, polluting boilers, with new, cleaner heating systems.

One of several Pellax pellet burners on display. The company is soon to launch an entirely new burner concept designed for agro-pellets.

In a bid to improve the capital’s air quality, the Mayor of London, Sadiq Khan, has launched a new GBP10 million boiler scrappage scheme. The first of its kind in the UK, the Mayor’s Cleaner Heat Cashback scheme will provide between 30 to 40 percent cashback to small and medium-sized businesses (SMEs) when they replace “older, polluting boilers”, with new, cleaner heating systems. However, biomass (and coal) boilers regardless of age are eligible for scrappage while new modern biomass systems are ineligible as a replacement. Perhaps a trip to ISH 2019 in Germany is in order.

Launched on July 30 in the midst of a record-breaking heatwave, the boiler scrappage scheme is part of the Mayor’s comprehensive programme of air quality measures that will also help to make London’s workplaces more energy efficient and cut the capital’s carbon emissions. Newer, more energy efficient heating systems will help to tackle air pollution as it will see a reduction in nitrogen oxide (NOx) emissions.

Commercial gas consumption is currently responsible for 7 percent of London’s NOx emissions, but as measures to cut harmful pollutants from transport take effect, this proportion will increase. Transport measures include cleaning up the capital’s bus and taxi fleets and introducing the Toxicity Charge for the oldest polluting vehicles in central London.

The Cleaner Heat Cashback scheme is part of the Mayor’s GBP34 million Energy for Londoners programme which aims to make London’s homes “warm, healthy and affordable”, its workplaces more energy efficient, and to supply the capital with more local, clean energy.

There are thousands of small businesses in London who have older boilers and this hugely innovative scheme not only helps them to save money, but it also reduces carbon emissions and improves the capital’s air quality. Businesses could save hundreds of pounds a year on energy bills by switching from an older, inefficient boiler or heating system – and this is exactly the kind of initiative that will help us achieve the Mayor’s ambition of making London a zero-carbon city by 2050. Tackling London’s filthy air is one of the Mayor’s top priorities and this is just the latest in a package of measures that he has introduced to improve the quality of the air we breathe, said Shirley Rodrigues, Deputy Mayor for Environment & Energy.

The scheme follows the Mayor’s Better Boilers scheme which replaced and repaired inefficient and broken boilers in nearly 500 fuel-poor households. In addition the Mayor’s RE:FIT Programme has been retrofitting energy efficiency measures to London’s public sector buildings. This includes installing LED lighting, heating controls, and solar PV, together with new energy efficient street lighting.

The Cleaner Heat Cashback scheme is being delivered in partnership with the Energy Saving Trust, industry experts in energy efficiency.

We are delighted to be supporting the Mayor of London to deliver this ground-breaking scheme. It will help smaller businesses across London to benefit from energy efficiency which in turn will enhance air quality across the city. We hope that other cities across the UK follow the Mayor’s lead and provide similar schemes, said Philip Sellwood, Chief Executive of Energy Saving Trust.

ABOUT Cleaner Heat Cashback

The scheme is open to small and medium-sized enterprises (SMEs) in Greater London with older, inefficient boilers. They must own their premises, be a tenant with building maintenance responsibility or have their landlord’s permission and pay commercial rates. The scheme is open to any type of SME – from start-ups and sole traders, partnerships and limited companies to limited liability companies – provided they meet the EU definition of an SME and have less than 250 employees and an annual turnover of under EUR 50 million.

To be eligible, existing heating systems must be fuelled on gas, oil or LPG boilers of a minimum 10 years of age, or use coal or biomass of any age. Systems must be a minimum size of 70kW. Replacement systems must be at least 90 percent efficient gas or LPG boilers or connect to a heat network or renewable technologies such as solar thermal, air or ground source heat pumps and have NOx emissions of 40mg/kWh or less. Replacement heating systems need to be installed by accredited installers on the system manufacturers approved list.

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