Designed to cut carbon footprints and energy bills, the boiler scrappage scheme gives households £400 towards replacing their aging boilers with new energy efficient ones. Since its launch at the beginning of the year, it has seen an uptake of over a third of its vouchers, leaving around 70,000 worth £28million available to claim.

The scheme itself is also under attack as some heating specialists believe replacing a working boiler for around £2,000 is ‘financial madness’. Charlie Mullins from Pimlico Plumbers argues, ‘What is the point of replacing a boiler in perfectly good working order? It is financial madness. New energy-efficient boilers are not built to last like the old models — if you get ten years out of them, you’ve done well. We often have to replace boilers that are about six years old.’

Energy suppliers including British Gas, nPower and EON are offering a further £400 discount to match the government’s scheme, saving customers potentially £800 off the cost of a new boiler. Although it sounds like a great deal, some customers claim the prices they are being quoted by energy suppliers are considerably higher than independent heating specialists.

Green Heat’s Peter Thom said ‘The energy suppliers are top-loading the price and then offering an £800 discount. A customer I saw in Cambridge received a quote from British Gas of £5,012 for a boiler replacement, which reduced to £4,212 with the £800 discount. Our quotation for exactly the same work and identical boiler was £2,894.’

British Gas responded by saying ‘We have not increased our prices and they are actually lower now than they were 12 months ago, as we’ve been working with manufacturers to ensure a good deal for customers. The cost of a boiler will vary based on the customer’s home and lifestyle.’

Most households tend to go with a trusted brand when it comes to boiler replacement; however some are confused by the dramatic difference in prices, and wondering if it is worth taking up the scheme. It is advisable to shop around and get at least three quotes, including one from an independent heating company before making any decision.

Households should also consider the longer term benefits of installing an A-Rated energy efficient boiler, rather than its initial cost according to the energyhelpline’s Mark Todd. He advises, ‘Consumers should be aware that the savings come in the long term. The cost of a new boiler is £2,000-£3,000, so a £400 discount means that customers will still need to pay £1,600 to £2,600. With a saving of £200 a year on energy bills, it will take those signing up 8-13 years to break even, when it will probably be time for a new boiler.’

If you are considering replacing your boiler, read our article Boiler Scrappage Scheme – What You Need To Know, and find out if you are eligible. Further information can also be found on the energy advisory website energysavingtrust.org.uk.

It is also worth doing some reading up on boilers. Our boiler manufacturer’s guide is a good place to start.

Sources:

http://www.timesonline.co.uk/tol/money/article7033768.ece

http://www.energysavingtrust.org.uk/Home-improvements-and-products/Heating-and-hot-water/Boiler-Scrappage-Scheme

Figures released by the Department of Energy and Climate Change this week revealed a total of 54,578 vouchers taken, out of the possible 120,000 available at the start of the scheme in January. This leaves around 70,000, worth £28million up for grabs. So if you want to take advantage of it, you should act now to avoid disappointment.

The scheme was set up to help households reduce their carbon footprints and save money on their energy bills. Any household in England using an old gas-guzzling ‘G-Rated’ boiler can claim £400 towards replacing it with a new ‘A-Rated’ one.

Ed Miliband, the energy and climate change secretary said ‘The scheme is helping householders to save around £200 a year on fuel bills and reduce emissions, while helping to sustain work for the 130,000 installers and up to 25 UK-based boiler manufacturers’.

Since the launch of the scheme, all the major energy suppliers including British Gas, npower and E.ON have matched the government’s offer. This means households can potentially save £800 off the cost of a new energy efficient boiler.

The scheme is run by the Energy Saving Trust, who have been inundated with customer calls about it. They have reported receiving almost 400,000 calls, averaging around 5,000 a day to their regional call centers.

Households have no doubt warmed to the scheme; however the level of interest has meant some are facing delays in joining. The Energy Saving Trust has responded by increasing its call centre staff to meet demand.

Miliband added, ‘The boiler scrappage scheme has proved incredibly popular and with energy companies and manufacturers offering deals as well, the government scheme has truly kick-started a national programme of boiler replacement.’

Households accepted by the scheme and already in receipt of their vouchers will need to wait until their new boiler has been installed before they can claim back their money. The Energy Saving Trust will issue payment within 25 working days of receiving the voucher and paperwork detailing the cost of the job.

Do you qualify?

To join, you must have a working ‘G-Rated’ boiler, or one which is 15 years old or more. A good indicator is if your boiler has a permanent pilot light. If you are under 60, you are eligible to apply if your boiler provides the main source of heat to your home and is still working. For over 60’s, the boiler does not have to be in working order to qualify.

How to apply

Once you have checked your boiler is ‘G-Rated’, arrange a quote for a new ‘A-Rated’ model. It is wise to shop around for a competitive price, by contacting your local qualified boiler installer or your energy supplier. Once you have your quote, contact the Energy Saving Trust with the details and they will issue your voucher prior to the work starting. Once your new boiler has been installed, you will need to pay the installer in full before sending the receipt and voucher back to the Energy Saving Trust where you will receive your £400 rebate within 25 working days.

You should bear in mind some energy suppliers are offering a further £400 off.

Sources:

http://www.guardian.co.uk/money/2010/feb/15/boiler-scrappage-scheme-vouchers
http://www.myfinances.co.uk/cut-your-bills/news/over-54-000-sign-up-for-boiler-scrappage-scheme-$1360300.htm
http://www.moneysupermarket.com/c/news/act-fast-to-benefit-%20from-boiler-scrappage-scheme/0008516/
http://www.which.co.uk/news/2010/02/boiler-scrappage-scheme-vouchers-still-available-203733
http://www.electric.co.uk/news/a-third-of-all-vouchers-for-the-government-boiler-scrappage-scheme-are-gone-12341678.html

The doubt has arisen because under the government’s own Warm Front scheme, pensioners and those on a low income or benefits are eligible to financial assistance for buying and installing a new boiler. The maximum amount available is £3,500, and in many cases this will cover the entire cost of replacing a boiler.

If however they apply for the new Boiler Scrappage Scheme, where a £400 rebate is available, they will forfeit the money they receive from Warm Front. This is likely to confuse many such households, who may end up applying for it and receiving less than their entitlement.

There is also a clause in the Boiler Scrappage scheme which means anyone over the age of 60 can apply for it whether their boiler works or not. This could result in many pensioners applying for their £400 rebate oblivious to the fact that they cannot apply to Warm Front as well.

The advice for households on benefits or a low income is to apply to the Warm Front scheme where they are likely to get more financial help. If they are unsuccessful they can still apply for the Boiler Scrappage one. The Warm Front scheme works by assessing household needs and income levels, and pays out accordingly.

Pensioners on benefits are also being advised to apply to Warm Front. The fuel poverty expert at Help The Aged, Mervyn Kohler, said ‘If you are a pensioner in receipt of benefits you are likely to be eligible for Warm Front, which can give you a whole new heating system and insulation. If you are not claiming means-tested benefits then we’d recommend you apply for the boiler scrappage scheme’.

It would seem vulnerable households could end up losing out on the £3,500 available from Warm Front, unless they are fully advised on their best course of action. If you think you may be entitled to either of these schemes, it is wise to do some reading up on them to avoid any confusion and before applying. Further information is available from the following websites:

www.warmfront.co.uk
Find out how the scheme works, and whether you are eligible.

www.energysavingtrust.org.uk
For news and advice energy efficiency, and the Boiler Scrappage scheme.

Sources:
http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/6934544/Boiler-scrappage-scheme-goes-live.html
http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/6947667/Pensioners-could-lose-3500-if-they-apply-for-boiler-scrappag.html
http://www.warmfront.co.uk/
http://www.energysavingtrust.org.uk/?gclid=CJSft76wn58CFUQA4wodx0iCIA

Boiler efficiency ratings have never been so important, not only because they determine a boiler’s effectiveness, but also if it’s time to upgrade to a better model, your boiler’s energy efficiency rating is a main criteria for the £400 discount available from the Boiler Scrappage Scheme.

When considering efficiency ratings, the best place start is the Seasonal Efficiency of Domestic Boilers in the UK (SEDBUK) boiler efficiency range. Its purpose is to provide an accurate and impartial comparison of how well boilers work in relation to the energy they use. All types of boilers regardless of their make or model should come with a SEDBUK rating.

To keep things simple, SEDBUK has seven ratings bands A – G. With A being the highest efficiency and G being the lowest. To review the bands in more detail, view our SEDBUK boiler efficiency ratings page.

These days nearly all new boilers must be high efficiency because they omit less carbon, and convert more of the fuel they burn into heat for your radiators and hot water. This saves money and helps the environment.

It is recommended that any boiler with a G-Rating or energy efficiency rating below 70% should be replaced with a superior one. So how can you find out how yours fairs?

This can be done easily and requires no time at all. Simply make a note of your boiler’s make and model and find out how efficient it is using our SEDBUK Efficiency Table.

If your boiler is older than ten years or below the recommended 70% efficiency rating, it is worth considering a replacement. Not only will a new one save you money on your energy bills, it will also reduce your carbon footprint.

Replacing a boiler is costly, however as mentioned you could be eligible for the government’s Boiler Scrappage Scheme where a £400 rebate is available to help households upgrade to an A-Rated boiler.

To find out more about the scheme, visit the energy advisory website energysavingtrust.org.uk. Our article Boiler Scrappage Scheme – What you need to know will also give you a good insight.

Sources:
http://www.energysavingtrust.org.uk/Home-improvements-and-products/Heating-and-hot-water/Boiler-scrappage-scheme
http://www.sedbuk.com/

Many could also see this figure double to £800 now leading energy suppliers including British Gas and nPower have confirmed their plans to match the government’s payout. With a typical new boiler installation costing around £2,500, any financial assistance will be welcomed by all households.

The scheme has been put together with the Energy Saving Trust in a bid to make inefficient G-Rated boilers a thing of the past. Households can start applying for their £400 government vouchers from as early as the 18^th January. You have to be quick though, because this £50 million scheme is available only for up to 125,000 households who own a G-Rated boiler or one that is less than 70% efficient.

By replacing their old inefficient boilers, the scheme will save households around £275 on their energy bills.  It will also reduce annual household carbon emissions by around 1.26 tonnes per home according to the Energy Saving Trust, because G-Rated boilers are less than 70% efficient, whereas A-Rated ones are over 90%.

Also outlined by the government, the scheme will provide a much needed boost to the boiler manufacture and installation industries who have suffered since the slump in the property market. It reports around 60% of the new boilers used in its scheme will be manufactured in the UK, and around 120,000 boiler engineers set to benefit from increased work.

It works with eligible households trading in their old boilers for scrap, and claiming back their £400 discount voucher from the Energy Saving Trust.

The Boiler Scrappage Scheme has sparked much debate in the news, and whilst much of it is positive, there are some who are skeptical. They think new boiler installations are too costly, and £400 is not nearly enough to get households to upgrade.

Moneysupermarket.com’s Utilities Manager, Scott Byrom, said: “People will see a significant cut to the price of a new boiler – an attractive saving for those who are quick enough to take advantage of the scheme. While it is fantastic to see such measures put in place to help combat high fuel prices and carbon emissions, I am not sure it is enough to help encourage customers to replace their boilers as the overall costs are still high.”

Others are of the opinion that the scheme will become oversubscribed, because there are around 3.5million households with a G-Rated boiler, and it is only open to 125,000.

Most G-Rated boilers are over 15 years old, or tend to have a permanent pilot light on. To check yours, simply make a note of your boiler make and model and visit our Sedbuk Boiler Efficiency Table.

To take advantage of the Boiler Scrappage Scheme, it is recommended you shop around for a boiler installation quote. Get a few quotes by contacting your local boiler installers, and your energy supplier. It is worth bearing in mind some energy suppliers will give you an additional £400 discount to match the scheme, which means a total saving of £800.

Once you have your quote, contact the Energy Saving Trust with details of your old boiler and who will be installing your new boiler. Once they have verified your details, they will issue you with your £400 voucher (available from 18^th January). Once the installation is complete, you will receive your £400 rebate within 25 working days.

To find out more about the scheme, visit the energy advisory website energysavingtrust.org.uk

Sources:

http://business.timesonline.co.uk/tol/business/economics/pbr/article6950112.ece
http://www.thisismoney.co.uk/bargains-and-rip-offs/householdbills/article.html?in_article_id=496859&in_page_id=510&expand=true
http://www.energysavingtrust.org.uk/Home-improvements-and-products/Heating-and-hot-water/Boiler-scrappage-scheme
http://www.boilerscrappagescheme.co.uk/

Other than the price, considerations like the type of boiler best suited for the size of your home and heating requirements are key to making the right purchase. Expert help is readily available from boiler manufacturers and installers, and for an impartial view it is worth contacting your energy provider too.

This guide highlights the main factors affecting a new boiler purchase, however professional advice should be sought before you spend your money.

• Understanding The Types Of Boilers

  Generally all new and replacement boilers must be high efficiency condensing types. This is most definitely a step in the right direction, because they are better for the environment and will save you money on your energy bills. There are three types of condensing boilers; traditional, system and the most common, Combi boiler.  Although it tends to cost more, you will see a return on your investment after the first few years since it could cut your fuel costs by around 40%.
  

  Combi boilers, are compact and work without the need for a hot water cylinder, which makes them ideal for smaller properties and flats. Traditional and System boilers do require hot water to be stored in tanks and cylinders, and therefore are better suited to larger properties.

  To determine the best type for your home, you should enlist the help of a Gas Safe (formerly CORGI) registered engineer, who will conduct a home assessment and advise you on the best choice.

• Be Fully Prepared Before Your Engineer Visit

  It pays to be prepared prior to your engineer’s visit, because you will no doubt be asked many questions to help him determine the most suitable boiler for your needs. A good place to start is to know your budget, and sticking to it. Some boiler installation companies offer finance options to help you spread the cost, so it is worth looking into your options.

  Knowing the level of demand your home and lifestyle requires is also essential where preparation is concerned. Think about the number of people living in your home, and how often they will require hot water at the same time. For instance, a large family with children will have an increased hot water demand in the morning when they are getting ready for work and school as oppose to a smaller family. The engineer will take such factors into account, and ensure that your new boiler has the right specification in order to meet the level of demand.

  Depending on the boiler, you may need to reconsider where it will be located. Ideally a new or replacement boiler should be installed in the same place to minimise costs and disruption, however condensing boilers emit steam which may require you to change the location of your flue.

  If you have any renovations planned for your home in the future, then let your engineer know. These may impact the choice of boiler, because if you are planning a loft conversion you may not have room for a traditional or system boiler.

• Consider Alternatives

  Renewable energy sources are easily accessible these days. Despite what many people think, a solar heating system can provide a home with an ample hot water supply, and it does not require bright sunshine to work. Although solar heating is considered expensive, when it is combined with a new boiler installation it can work out cheaper. It has many advantages including zero impact on the environment, and cutting energy bills.

Buying a new boiler is a considerable investment, and one not to be taken lightly. The good news is that there is plenty of free help and advice available from boiler experts. You can visit numerous websites like energysavingtrust.org.uk or which.co.uk to find further information, and compare boiler specifications and costs.

If your boiler is older than 10 years, then it will not be nearly as energy efficient as more recent models. Every time it is used, it will cost you more money because a considerable amount of heat it generates gets lost via its flue. High efficiency condensing boilers however, convert over 90% of the fuel they burn into heat, and are able to recover most of the heat wasted by older boiler types.

By law all new or replacement boilers must be high efficiency condensing types, and although installing a new boiler can be expensive, it makes a great investment because once installed, it will save you up to 40%* or around £200 on your energy bills year after year. As it consumes less energy, you will also minimise your environmental impact and you reduce your carbon footprint.

The most popular type of high efficiency condensing boiler is the Combi Boiler. This type cleverly activates on demand, so there is no need to store hot water or wait for water to heat up. This also means that it is easy and generally cheaper to install, because less space and time is required.

When Should You Consider A New Boiler?

It is recommended that if your boiler is over 10 years old, then it should be replaced. However, making such a decision can be difficult, so always seek advice from the experts first. Many energy suppliers offer free no obligation advice and quotes on new boiler installations to help you make your choice.

You should also understand the requirements of your home and how its size will impact the type of new boiler you install. For example, what are your hot water and heating demands? How many bathrooms do you have?

Installation

For safety and piece of mind, all new or replacement boilers must be installed by an approved Gas Safe (formerly CORGI) registered engineer. This will ensure that the installation is done expertly, safely and to the manufacturer’s recommendation.

* Source – Energy Savings Trust.