Cleaner Heat Cashback scheme
What is the Cleaner Heat Cashback scheme and why was it introduced?
The Cleaner Heat Cashback Scheme was launched to cut carbon and NOx emissions of non-domestic buildings in London. It is the first commercial boiler scrappage scheme of its kind in the UK. It will help to improve air quality, reduce health risks and customer costs. As we know, non-domestic buildings account for 44% of carbon emissions in London. Additionally, commercial gas consumption of gas boilers is responsible for 7% of the capital's total NOx emissions.
The scheme originally had a £10m pot available for replacing commercial heating systems in the capital but has been reduced to £500,000 in June 2019.
How long is the Cleaner Heat Cashback scheme running?
30th July 2018 – 31st March 2020 (or until the money runs out).
Who is eligible for the Cleaner Heat Cashback scheme?
- Small or Medium-sized Enterprises (SMEs) based in Greater London: employ < 250 persons, annual turnover ≤ €50m/annual balance sheet ≤ €43m.
- Applicants can be
- Building owners
- Tenant with responsibility for maintenance or with permission from the landlord
What heating equipment can be replaced?
- Existing gas/oil/LPG boiler ≥ 10 years
- Coal/biomass boiler of any age
- ≥70kW output (or cascade e.g. 2 x 35kW)
- Product must be in working order
What type of new heating system can be installed as part of the Cleaner Heat Cashback scheme?
- Gas/LPG boiler ≥90% efficient (ErP) with NOx emissions ≤40mg/m³
- Air source heat pump > 250% efficiency (ErP)
- Ground source heat pump > 330% efficiency (ErP)
- Hybrid system containing one or more of the above + solar thermal
- Connection to a heat network
PLUS Installation must be carried out by an accredited, manufacturer-approved installer.
What is the maximum amount of cashback for a new commercial heating system?
No maximum amount, but applications > £70,000 will be looked at more closely.
What costs are covered under the Cleaner Heat Cashback scheme?
- Capital costs of new equipment that fulfil requirements
- Capital costs of system ancillaries (except for new radiators/heat emitters, upgraded BMS)
- Removal of old boiler and flue
- Installation of replacement heating & connection to existing heating system (excluding ancillary works such as
- new radiators or pipework)
- System cleaning, first fill water treatment and recommissioning in line with best practice
- Metering - heat meters (but NOT electricity meters, submeters)
- Heat networks: removal of old boiler including redundant ancillaries, capital costs of Heat Interface Units (HIUs) with integrated controls and their installation, pipework connection to an existing network up to 50m away (but NOT changing of radiators/emitters, heat metering, upgrade of controls/BMS, complete disconnection from gas mains, pipework connection to existing heat network >50m away)
How much cashback can be claimed?
Percentage of total heating system replacement cost covered by Cleaner Heat Cashback Scheme
Outside Air Quality Focus Area
Inside Air Quality Focus Area
Hybrid systems (solar thermal)
Air Quality Focus Areas can be seen on this map.
How does the application to claim the Cleaner Heat Cashback work?
End user – manufacturers and installers cannot apply, unless they are the end user
What information is required?
- Current heating system details: fuel type, age and size; photo of the boiler plate and plant room including heating system
- Copies of heating fuel bills going back at least 12 months
- Details of the new heating system including quotations from at least two different manufacturer-approved installers
- Installer quotations must be on headed paper, dated, break down the costs per item, and contain the following details: business name and contact name of the applicant, installation address, details of the new heating system, including make, size, model and ErP data fiche
What happens after the application?
- Application is checked for eligibility by Energy Saving Trust and Kiwa. If successful, cashback voucher will be sent out (valid for 6 months after installation has been completed and invoiced).
- Installation of the new heating system.
- Applicant to send cashback voucher, invoice and other required documents; cash to be paid straight to bank account.
Where can I find more information about the Cleaner Heat Cashback scheme?
www.london.gov.uk/what-we-do/business-and-economy/cleaner-heat-cashback - for frequently asked questions, visit https://www.london.gov.uk/what-we-do/business-and-economy/cleaner-heat-cashback/cleaner-heat-cashback-faqs