A surprising 38 per cent of NOx emissions in central London is generated by gas heating systems. That’s why the London Mayor’s focus on air pollution does not stop with vehicle emissions and why he has recently announced that he is setting aside £10 million for the first ever commercial boiler scrappage scheme in the UK. 

The scheme offers small businesses across the capital grants to replace old, inefficient and polluting boilers with new systems. It builds on the Mayor’s existing £4.2 million RE:FIT programme aimed at reducing energy demand and carbon emissions, improving air quality and delivering large guaranteed energy savings for the public sector.

So should other authorities across the UK follow suit and are we likely to see a more sustainable corporate sector as a result? There has been some negativity around boiler scrappage schemes in the past as they do not demand a switch to renewable heating systems. Critics say older boilers would have been replaced in the medium term anyway and some question whether modern fossil fuel systems, which still burn natural gas and create NOx and carbon emissions (albeit at a lower level than before), are worth the additional cost to the state.  

A number of domestic boiler scrappage schemes have been operated across the UK in recent times: I took advantage of one myself when redeveloping my own house in Fife last year. And in Switzerland corporate organisations have to replace all fossil fuel boilers every 10 years to ensure technology stays efficient and modern. However, the London Mayor’s scheme is the first aimed purely at the commercial sector in this country and as such it is likely that the benefits will be felt on a grander scale than have been seen here before.

Replacing old polluting heating systems can be an expensive consideration for many small businesses, and a ‘make do and mend attitude’ often prevails. Offering a scheme with financial incentives will enable this sector to install efficient, modern equipment which will reduce both the risk of breakdowns and also running costs, while improving air quality. However, some important secondary benefits emanate from such a scheme as it has the potential to put sustainable energy on the agenda in company boardrooms, triggering discussions about how best to meet the objectives of cleaner air, lower carbon emissions and cheaper energy bills. 

Indeed when a company considers replacing their boiler plant, they would do well to look at their wider energy use and consider a whole spectrum of technologies by undertaking an energy audit. This can often be free of charge if conducted by a third party via Savills ESCO (Energy Service Company) service.

As well as looking at boiler replacement such an audit might also encompass building management systems, voltage optimisation, variable drives, solar PV and LED lighting. Therefore the boiler replacement scheme should be seen as a conversation starter that could lead to far bigger benefits for both the company concerned and the environment.

Further informaton

Contact Energy, Utilities & Infrastructure