Energy Surveys EPC Blog

Boiler Scrappage to Benefit Jobs, Climate and Bills

Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband will today kick start a national scheme to upgrade household heating systems to cut carbon, save money on fuel bills and sustain work for the heating industry.

Up to 125,000 households in England with working “G-rated” boilers can from today apply through the Energy Saving Trust for a voucher which will entitle them to £400 off the price of a new, modern “A-rated” boiler or a renewable heating system like a biomass boiler or a heat pump.

The Government’s Boiler Scrappage Scheme has already triggered some companies to complement, and in some cases match, the offer and it is expected others will follow suit. This will extend the scheme to many more householders and safeguard work for the heating industry. People are advised to shop around to find the best deal which suits them before applying to the Scheme.

The Government’s Boiler Scrappage Scheme will:

• Help sustain work for the 130,000 installers and over 25 UK-based boiler manufacturers throughout the economic recovery.
• Save money. A household’s energy bill could be cut by between £200 to £235 a year.
• Save carbon. Replacing 125,000 G rated boilers should save in the region of 140,000tCO2 per year - equivalent to taking 45,000 cars off the road

The Prime Minister said:

“Today’s announcement will slash household energy bills and carbon emissions while providing an important boost for the British heating industry.  The Government’s new scrappage scheme will help to secure 250,000 jobs across the tens of thousands of small and medium businesses involved in boiler manufacture, sales and installation that form a vital component of Britain’s low carbon economy.  The scheme shows how this Government continues to invest in the British industries and jobs of the future.”

Ed Miliband said:

“The Boiler Scrappage Scheme will save around £200 off heating bills per year for families that are replacing their old boilers, and in total will save the same amount of carbon equivalent to taking around 45,000 cars off the road.

“The Scheme will add to the existing package of Government measures to help householders be smarter about the energy they use, leading to permanently reduced fuel bills and cutting emissions.” 

Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust said:

“We know that people will act on larger energy efficiency measures like replacing boilers when they are both good for the environment and cost effective for them. They also need to be able to trust the claims that are made around energy efficiency measures. The Energy Saving Trust is impartial, can provide this assurance, and can provide information to help people assess whether their boilers are eligible. If you have access to the internet you can go on line to check whether your boiler is G rated or if you prefer, our expert nationwide advice centre staff are also available to advise you over the phone. We are here to help.”  

Roger Webb from the Heating and Hot Water Industry Council, the trade association for the Heating industry said:

“HHIC strongly welcomes the initiative to replace old inefficient boilers.  We have been campaigning diligently for a long time and given the importance of meeting the government’s emission targets this will make a significant difference. Householders are naturally reluctant to replace a working boiler even though it is wasteful on energy and so an incentive to do this is vital. We are delighted that the government is giving the green light to enable householders to replace an old inefficient boiler with a new energy efficient model and by doing so recognising that a new boiler can really improve energy efficiency. The scheme is good on many levels because householders could see a large reduction in their energy bills, the major carbon savings resulting from replacing inefficient products will help climate change and finally for UK Industry and employment because most boilers installed are actually manufactured in the UK.”

Notes to Editors:

• 1. To find out more about the Government’s Boiler Scrappage Scheme and to register, contact the Energy Saving Trust by visiting www.est.org.uk or calling the advice line on 0800 512 012
• 2. The Boiler Scrappage Scheme joins the package of Government measures to improve household energy efficiency. These include CERT, an obligation placed on energy suppliers to offer energy efficiency measures to households; the Warm Front scheme, targeted at pensioners and those on qualifying disability or income related benefits, to provide heating and insulation measures which could reduce fuel bills; Decent Homes, a programme to improve the energy efficiency of social housing; CESP, the community energy savings programme funded by an obligation on energy suppliers and electricity generators; and Pay As You Save trials, which are currently being piloted in five areas to test out new ways to finance whole house energy makeovers. In conjunction with the rollout of smart meters and the introduction of cashback for the generation of renewable heat and electricity, Government is helping householders be smarter with their energy use.
• 3. According to the HHIC, the average cost of a boiler and installation is around £2500.

1. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change.  We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts.  Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty. 

Department of Energy and Climate Change

3 Whitehall Place, London, SW1A 2AW

Press enquiries +44 (0)300 068 5218 Public enquiries +44 (0)300 060 4000

Textphone +44 (0)20 7215 6740 (for those with hearing impairment)

We often hear people say that it is expensive to put central heating in or to replace an old inefficient boiler. But it is in fact the reverse as inefficient or non existence of central heating can seriously affect the value of a property.

84% of energy used in the home is for heating and hot water. Older boilers are less than 60% efficient compared to new “A” rated condensing boilers which are over 90% efficient. Replacing an old boiler can reduce your fuel bill by as much as £300 per year.

The Housing Market Research Report produced by Nationwide in 2006 stated that although the cost of installing central heating was about £5000, it would add about £10,000 to the value of the property. Not having central heating detracted 6.8% from the value of the home in 2006, but Nationwide’s 2009 report indicates this has now risen to a 9% reduction in value - this means that the value of a £200,000 property would reduce by £18,000.

The report also suggests that In the future, we could see greater use of local alternative energy sources with government grants available for technologies such as solar power cells, wind turbines and ground source heat pumps. It is too early to assess the impact these might have on property prices, particularly as the payback time can be very long, but they could prove to be value-adding features in the future

While we want warmer homes we have become more aware of fuel costs and also of the increased emphasis on our environmental responsibilities. As a result, households seem to have become increasingly conscious about their energy use. The requirement to have an Energy Performance Certificate (EPC) when selling or renting a home now makes it easy to compare the efficiency of different properties. However, even before this, energy efficiency within the housing stock has gradually improved, with the average energy efficiency (SAP) rating for owner occupied properties increasing from 41 to 48, out of a possible 100, between 1996 and 2007. Energy efficiency of homes is also gauged in terms of the A-G ratings familiar from domestic appliances. With British homes amongst the least energy efficient in Europe (Average is E Rated) and responsible for 27% of the UK’s total carbon emissions, there is plenty of room for improvement, especially given the Government’s target to reduce carbon emissions by 34% by 2020 and 80% by 2050.

The Energy Saving Trust’s Hidden Value Guide suggests that people will pay over £3000 more for a home that has a good energy efficiency rating compared to one that is not environmentally friendly - The EPC helps demonstrate this. The Guide also confirms that over 80 per cent of people say that running costs of the home are becoming increasingly important and 68 per cent don’t want energy inefficient F or G rated homes.

The message is loud and clear - It makes sound economic sense to stop wasting energy in the home:

• Energy saving improvements pay for themselves
• They add significant value to the home
• Improve comfort
• Reduce fuel bills
• And help the environment by reducing carbon dioxide emissions

Peter Thom, Managing Director of Girton based Green Heat also suggests that that there has never been a better time to replace old inefficient boilers with VAT currently reduced to 15% until the end of the year but will go back to the old rate of 17.5% or even higher. There is also a £300 grant for anyone over 60 which is not means tested and there are all the other financial benefits indicated in this article. Recent “Which” reports also confirm that smaller reputable heating companies, such as Green Heat, will provide a better service than British Gas and be as much as £1000 less expensive for a boiler installation. Green Heat will be celebrating 20 years of helping the Environment and home owners and have won a number of awards including Domestic Heating Installer of the Year in 2001 and 2009 and the Gas industry Energy Efficiency Award 2009. We have also been short listed for the CORGI Green award and the Green Installer award 2009.

Green Heat provides competitively priced gas and oil boiler installations and also Energy Performance Certificates for Home owners and Landlords and can be contacted on:

 01223 277278 or www.greenheat.uk.com

Further information can be found on www.G2Action.org which is a dedicated website launched in the Houses of Parliament earlier this year to show people why and how to improve their homes from being rated “G” towards “A”.

November 2009

After much deliberation the Government has slowly been introducing the requirement for Energy Performance Certificates (EPC’s). These are required to be provided for all homes by European legislation - the Energy Performance of Buildings Directive which must be fully implemented by 2009 and is one of many initiatives to help reduce carbon dioxide emissions and combat climate change.

EPC’s have also been made a requirement of UK legislation and are a key element of Home Information Packs (HIPs). The Government appears to have muddled through the introduction of these potentially valuable documents for householders and this has caused great confusion. Last August all 4 bedroom homes needed an EPC before they could be sold; this was extended to 3 bedroom homes in September and then the rest of the market in December. All new built homes were to also require an EPC by October 2007, this was put back to January 2008 and then put back again to 6^th April. The final phase of the domestic market should happen In October 2008 when all rented homes will require an EPC.

Prime Minister Gordon Brown and Secretary of State for the Environment Hilary Benn recently announced that the Government would provide funding of £100million for the development of a ‘green homes’ service over the next three years. The service is set to ease the confusion surrounding Energy Performance Certificates, confusion which was created by the Government in the first place due to poor communication and ineffective information being available.

I would question if this is really necessary when the professionals providing the relevant services have already taken it upon themselves to ensure their clients and communities understand the requirements of, and benefits of a home energy assessment. There is a growing army of Domestic Energy Assessors (DEA’s) who have all been trained and are qualified to provide Energy Performance Certificates this includes an increasing number of heating engineers. In addition to this over 62,000 heating installers have obtained the “Energy Efficiency Heating” qualification. It is estimated that over £50million has been invested in training, qualifications and registrations.

With EPC’s being extended to rented homes in October there is a real opportunity for gas engineers to train as DEA’s to provide EPC’s to link with the provision of landlord gas safety certificates.  Are you ready? For details email: deatraining@epcs4u.com

The purpose of an Energy Performance Certificate is to provide an energy rating of a home to indicate both running costs for heating, hot water and lighting and the carbon dioxide emissions; this is then converted into the A-G rating also used on fridges and boilers. Arguably the most important part of the EPC is the accompanying report which indicates the specific measures, tailored to the particular home which will provide the best savings and improvements. What it does not do is tell people where to go to find qualified and competent installers to undertake the improvements or what questions to ask and qualifications to look for.

Having recognised the confusion being created and the limitations of the legislation we have used our experience and with the support of 3 industry groups within the Energy Efficiency Partnership for Homes* have developed a very easy to navigate website which addresses all the issues now being discussed with Government with regards to getting people to act on improving their EPC, indeed we take this a step further and are encouraging people to get an EPC outside or in advance of the selling process. The website is www.epcs4u.com and it also provides guidance and direction towards competent and qualified installers, green mortgages, green energy tariffs, grants and even DEFRA’s Carbon Calculator and a search facility for qualified DEA’s.

Market research indicates that there is a great deal of confusion and people are concerned that a poor EPC rating will have an adverse effect on property value. There are also concerns of where to go to get a reputable installer for improvement work so the website addresses this too.

This initiative expands the potential market to over 15million private homes rather than rely on a very fickle housing sales market which is nearer 1million.

EPCs4u is also supported by the major industry trade and professional bodies, including IDHEE, CORGI, HETAS, OFTEC, HHIC, NIA, EST and Network Veka.

The Government has a very poor record of actually implementing climate change legislation on time. This in turn leaves the public confused at the lack of action and not knowing what to do, where to go or what questions to ask. www.epcs4u.com has been developed to
address all these issues and has full support of the energy efficiency industry - those qualified and registered to provide the assessments in the first place and also those who can undertake energy-saving improvement work.I do therefore question why the Government is throwing £100million at yet another scheme to promote energy efficiency, when the industry itself has already taken on the task at no cost to the tax payer.

Peter Thom

If you are a Landlord and require Energy Performance Certificates please contact peter@epcs4u.com

*The aim of the Energy Efficiency Partnership for Homes (the Partnership) is to achieve energy efficiency in homes and alleviate fuel poverty through engaging cooperation and collaboration within the supply chain for energy efficient products and services. The Partnership is Government supported and has a comprehensive footprint within all relevant industry and social sectors and provides an effective mechanism for cross-sector cooperation and joint delivery of energy efficiency initiatives.