£10m London boiler scrappage scheme launched for SMEs


SMEs in London are being incentivised to replace older boilers for cleaner, more efficient heating systems under a new £10m scheme launched by Mayor Sadiq Khan.

Under the Cleaner Heat Cashback programme, small firms are entitled to at least 30% cash back if they replace existing working heating systems. If they are gas, oil or LPG, they must be at least 10 years old. If boilers are coal or biomass, they can be any age, as the scheme is intended to help reduce air pollution.

Systems must be a minimum size of 70kW. Replacement systems must be at least 90 per cent efficient gas or LPG boilers or connect to a heat network or renewable technologies such as solar thermal, air or ground source heat pumps. They must have NOx emissions of 40mg/kWh or less.

To qualify for cashback, replacement heating systems need to be installed by accredited installers on the system manufacturers approved list.

The scheme is open to any type of SME, though they must own their premises, be a tenant with building maintenance responsibility or have their landlord’s permission and pay commercial rates.

The Cleaner Heat Cashback will run until 2020, or until the £10m is used up.

Boiler manufacturers welcomed the scheme and urged government to rollout a national version to speed decarbonisation of heat.

Eligible firms in greater London can apply for Cleaner Heat Cashback here.

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