Commercial boiler cashback scheme launched in London

A commercial boiler cashback scheme has been launched in London, offering small or medium-sized enterprises (SMEs) a financial contribution towards the cost replacing their old existing heating system.

Launched by the Mayor of London, Sadiq Khan, the £10 million Cleaner Heat Cashback scheme will give SMEs a 30 per cent contribution towards the cost of a replacement gas or LPG-powered boiler, or 35 per cent when installing heat pumps, hybrid systems or if connecting to a local heat network.

Businesses located within Air Quality Focus Areas will also be able to get an additional five per cent uplift.

The scheme commenced on 30 July 2018 and will close to new applicants on 31 March 2020, or earlier if all funding has been committed. It will be administered by the Energy Saving Trust.

To be eligible for the scheme, businesses must be SMEs, based in London, and either the building owner, a tenant with responsibility for building maintenance, or a tenant who has permission from the landlord to carry out the works.

The existing technologies being replaced must be:

• A gas, oil or LPG boiler which is a minimum of 10 years’ old
• A coal or biomass boiler of any age
• At least 70kW in total system size, either as a single unit or as a number of boilers fitted in cascade.

Replacement heating systems installed under the scheme must be at least 90 per cent efficient and have NOx emissions of 40mg/kwh or less.

Installations must be carried out by an engineer who is approved by the manufacturer of the heating system they are installing. There is no list of pre-approved products, so businesses will be free to choose the make and model of heating system they prefer. While the businesses who apply for the funding must be based in London, there are no geographical restrictions for the engineers who fit them.

Before applying for the cashback, businesses must get at least two quotes from approved engineers. They will then need to apply for the scheme and, provided they are eligible and funds are still available, they will receive an email confirming that they have been issued with a cashback voucher.

Vouchers are valid for six months from the date of issue. Once the installation is complete, businesses can then claim the cashback by sending the voucher, together with the works invoice. Applicants will need to pay for the installation before receiving the cashback.

The scheme has been introduced to help tackle air pollution, carbon and NOx emissions in the capital. Research suggests commercial gas boilers are responsible for around seven per cent of London’s total NOx emissions, while non-domestic buildings account for around 44 per cent of carbon emissions.

It is hoped that the scheme will help reduce NOx emissions by up to 80 tonnes per year, and reduce CO2 emissions by between 20,000 and 70,000 tonnes per year, saving up to £7 million per year off business’ fuel bills.

The Cleaner Heat Cashback scheme is being delivered under the Mayor’s £34 million Energy for Londoners umbrella programme.

Businesses can apply for the cashback online here.