Funding Available to London Businesses to Switch to Cleaner Heating

The £10 Million Cleaner Heat Cashback Scheme

After an announcement on the 30th July, this new incentive scheme allows small businesses in London to apply for funding to switch to ‘cleaner’ heating systems.

This scheme will offer SMEs up to 40% of the cost to replace an existing gas or oil LPG boiler, which has been running for at least ten years.

The replacement systems are required to be at least 90% efficient gas or LPG boilers, connect to a heat network or use renewable technologies such as ground source heat pumps or air source heat pumps. They will also need a local NOx emission rate of lower than 40mg/kWh.

Commercial gas consumption is currently responsible for around 7% of London NOx emissions, according to City Hall.

Air Quality

Shirley Rodrigues, Deputy Mayor for Environment & Energy, said: “There are thousands of small businesses in London who have older boilers and this hugely innovative scheme not only helps them to save money, but it also reduces carbon emissions and improves the capital’s air quality.

“Businesses could save hundreds of pounds a year on energy bills by switching from an older, inefficient boiler or heating system – and this is exactly the kind of initiative that will help us achieve the Mayor’s ambition of making London a zero-carbon city by 2050.

“Tackling London’s filthy air is one of the Mayor’s top priorities and this is just the latest in a package of measures that he has introduced to improve the quality of the air we breathe.

Non-Domestic 'RHI'

An addition to the 40% savings, and reduced energy bills, businesses may also be able to apply for the Non-Domestic Renewable Heat Incentive (RHI). The Non-Domestic RHI is a Government programme which provides financial incentives over a 20 year period for the use of renewable heating products, such as ground source heat pumps and air source heat pumps. 

If you have a live project or wish to find out more, please get in touch below and we will be happy to use our expertise to design and supply a heat pump system for your business.