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Replacing a boiler in your home is typically going to be one of the most expensive costs that homeowners face, with new boilers costing anywhere from £1000 to £7000 depending on the work that needs doing and the model of boiler that you choose. However, the good news for some homeowners is that you may be able to save a significant amount of money by claiming a government grant toward the cost of installing your new boiler. In some cases, you may even be eligible to get your new boiler free of charge. There are several schemes including rental schemes, boiler grants, and the Energy Companies Obligations schemes that are all in place to help you avoid the initial upfront cost. Read on to find out more about the options that are available and how to find out if you are eligible for any of them.
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Energy Companies Obligations Scheme
The ECO scheme was launched in 2013 with the main purpose of ensuring that the big energy suppliers offer help to homeowners and families who are struggling, tackle the issue of fuel poverty and reduce carbon emissions. This scheme is available in England, Scotland, and Wales. It makes energy companies obliged to install energy-saving measures in homes where they are needed, and there are lots of improvements that you may be able to get supplied by your energy company to make your home most efficient. Cavity wall and loft insulation are some of the most popular options, but you can also get support with replacing an old and inefficient heating system or boiler.
ECO4 Scheme
The ECO4 scheme is the current stage of the ECO scheme, which obligates large energy companies to contribute a certain amount towards making energy-efficient home improvements. If you want to find out more, you can simply get in touch with your current energy supplier who can let you know whether or not you are eligible for an ECO grant. However, bear in mind that simply being eligible does not mean that your supplier will always have to install energy-efficient measures in your home. If this is the case, then it is worth knowing that you do not have to go through the energy company that you are with, and you can ask any of the obligated energy suppliers for help. Companies involved in the scheme include British Gas, eON, EDF Energy, Octopus Energy, Scottish Power, Utility Warehouse, Shell Energy, Bulb Energy, Ovo Energy, and Utilita.
ECO Funding Eligibility
There is limited funding for the ECO scheme and strict eligibility criteria in place, which can sometimes make it tricky to work out if you are eligible for anything, and what you are eligible for. Contact your energy supplier who should be able to provide you with more information. You will either need to own your home or have your landlord’s permission to install energy-saving measures in the property. People who receive the Warm Home Discount or claim other types of benefits including Disability Living Allowance and Child Benefit are usually eligible for the scheme. You may be eligible for some but not all parts of the scheme. For example, you may be entitled to free insulation in your home but may be required to pay some towards the cost of having a new boiler installed. Check out Next Energy for more information on the different energy-saving measures that are available under the ECO scheme including new boilers and more. Next Energy provides more information on boiler grants and who is eligible for them, including a handy online check tool that you can use to instantly find out if you are eligible for a boiler grant for your home.
Affordable Warmth
The Affordable Warmth scheme is another part of the ECO scheme that is designed to help people with the cost of repairing or replacing their boiler along with other improvements to save energy at home. If you are in Wales, this scheme is managed by British Gas and is known as Next. Like the other ECO scheme benefits, it is not always easy to know if you are eligible. You will usually be required to own your home or have your landlord’s permission to make the improvements. People who are in receipt of a benefit such as Disability Living Allowance, Universal Credit or Child Benefit are likely to be eligible, along with people who live in social housing with a low energy efficiency rating of E, F, or G.
Boiler Upgrade Scheme
If you are not eligible for help with getting a new boiler or repairing your current boiler under the ECO scheme, then you may want to consider the Boiler Upgrade Scheme, which was introduced as part of the government’s ‘Heat and Buildings Strategy’ in October 2021. Under this scheme, households may be eligible to get up to £5000 towards the cost of replacing an existing gas or oil boiler with a more energy-efficient, low-carbon heating system like a heat pump instead. The scheme is set to be available from April 2022 and has been provided with £450m in funding to install ninety thousand heat pumps in homes over a three-year period. If you are interested in adopting low-carbon heating as early as possible, it’s worth finding out if you are eligible for this grant. However, there are a few things to consider if you are interested in getting a heat pump, including the fact that they are better suited to homes that have good insulation and are already fairly energy efficient.
Other Options
If you are not eligible for any of the above grants, then another option to consider if you need a new boiler for your home is a pay-monthly option. Several companies now offer rental boiler services which can be an ideal way to spread the cost of having a new boiler installed rather than paying thousands up-front. Many companies do not require a deposit or upfront cost, instead, allowing you to spread the cost of your new boiler with affordable monthly payments that often also cover maintenance, servicing, and repairs cost for the duration of the contract.
If you need a new boiler, it’s definitely worth considering all the alternative options that may be available to you before you pay a huge upfront cost for boiler replacement.
