Worcester calls for boiler scrappage scheme

Government is being urged by Worcester, Bosch Group to bring in a boiler-version of its scrappage scheme for old cars.

The call, from Worcester, Bosch Group, follows the introduction of the Government's car scrappage scheme, which is designed to kick-start the automotive sector, by offering drivers GBP2,000 towards a new car or van, if they trade in ten-year-old or more vehicles.

Carl Arntzen, Director, Bosch Thermotechnology, believes that a similar scheme for the replacement of older boilers with high-efficiency, Band A, condensing technology would potentially be even more successful.

'The scrappage scheme for cars is a very positive step for the automotive sector which has already proved very successful in Germany'.

'However, I am personally convinced that a scrappage scheme for old, Band G gas boilers would be even more successful in terms of injecting money into the economy and helping the Government to achieve its climate change targets'.

'A scrappage scheme for old boilers would help the industry by stimulating demand, help the Government by reducing carbon emissions and benefit the homeowner with lower fuel bills'.

Carl believes that the key to the scheme should be a shared commitment between the Government and boiler manufacturers'.

'There is an increasing recognition amongst manufacturers that we cannot ask the Government to provide all of the incentive for a scheme such as this, which would provide an enormous boost to the heating sector, whilst we take all of the potential financial upside'.

'There needs to be a shared commitment to incentivisation'.

It is estimated that there are currently 4.5 million Band G gas boilers in use in the UK that are currently covered by incentives in the Carbon Emission Reduction Target (CERT).

Carl says that previous discussions with the utility companies have indicated support in principle for a scrappage scheme for boilers, but the values have to be significant to make it worth their while and the current CERT values are not providing sufficient incentivisation to entice the homeowner'.

'CERT funding comes to approximately GBP50, which is not sufficient to entice homeowners to change'.

'Our belief is that the incentivisation needs to be more in the region of GBP200'.

Carl also believes that there is opportunity to provide similar financial incentives for renewable technologies, such as solar panels'.

'The combination of a high-efficiency condensing boiler for heating with hot water provided by solar power is a very attractive proposition'.

'We believe there is an opportunity to bundle boilers with other technologies and funding mechanisms to create an attractive affordable package for the homeowner'.

However, Carl does not believe that either the Government or manufacturers can provide an indefinite boost to the sector'.

'We would need a clear cut-off date which should probably be no later than 1 April 2011 when the Renewable Heat Incentive comes into play'.

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