Cleaner Heat Cashback scheme

As part of the ‘Energy for Londoners’ programme, a £10m Cleaner Heat Cashback scheme has been announced, which encourages small businesses in the capital to switch to renewable heating systems, such as ground source heat pumps (GSHPs).

Summary

Designed to help SME’s replace old, inefficient heating systems with new, cleaner alternatives, the Cleaner Heat Cashback scheme will reward businesses with 35% cashback when they install a ground source heat pump, or other renewable heating technology, with the exception of biomass boilers. Biomass fuels produce more air pollutants compared to other renewable technologies, therefore the scheme does not support the installation of new biomass boilers.

Aims

Delivered in partnership with the Energy Saving Trust (EST), the Cleaner Heat Cashback scheme supports London Mayor Sadiq Khan’s ambition to have a zero carbon capital city by 2050. As well as benefiting from the cashback incentive, businesses stand to make significant savings on their energy bills as a result of investing in cleaner heating systems. Businesses located in London’s Air Quality Focus Areas will be able to claim an additional 5% cashback.

It is intended that the Cleaner Heat Cashback scheme will improve air quality by reducing harmful pollution caused by combustion heating systems that burn gas, oil, LPG or biomass, such as particulates; Sulphur Oxides (SOx); and Nitrogen Oxides (NOx).  As ground source heat pumps are electrically driven devices with no combustion, there are no point of use emissions of any pollution, and no point of use CO₂ emissions either. This supports the scheme’s aim to boost commercial energy efficiency across the capital, as 40% of carbon emissions in the city currently come from non-domestic buildings.

How it works

Businesses will have 12 months to pay for and complete their ground source heat pump installations and claim the Cleaner Heat Cashback scheme voucher. The scheme operates on a first-come, first-served basis and will close for new applications once all £10m of the funding has been allocated, or by 31 March 2020.

There is the potential to co-fund projects with the Government’s Renewable Heat Incentive (RHI) scheme, provided the grant funded elements are limited to non-RHI parts of the work. To discuss using this funding in conjunction with the Cleaner Heat Cashback scheme, please contact Kensa on 0845 680 4328 or [email protected].

Eligibility

In relation to your current and replacement heating systems, they must meet the following criteria:

  • the heating system being replaced must be working, a minimum size of 70 kW and either:
    • an existing gas, oil or LPG boiler which is a minimum of 10 years old
    • an existing coal or biomass boiler of any age
  • replacement heating systems must be:
    • a gas or LPG boiler that is at least 90 per cent energy efficient and has NOx emissions of 40mg/KWh or less
    • a renewable heating technology (e.g. ground source heat pump or solar thermal), a hybrid system, or a connection to a heat network
  • Ground source heat pump installations must be undertaken by an MCS accredited installer

For more information, see https://www.london.gov.uk/what-we-do/business-and-economy/cleaner-heat-cashback

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