A new boiler can seem like a costly investment, even at the best of times, but when you consider the high efficiency levels of modern boilers, you could soon start reducing your energy bills.
As beneficial as a modern boiler would be to your home, getting over the average upfront cost of £2,000 – £3,500 can be tough, but you could be eligible for a boiler grant to either cover or help with the cost.
By the end of this article, you’ll know about the grants and schemes available to help cover the cost of a new boiler and whether you’re eligible.
Costs of Replacing a Boiler
When considering a new boiler you have to take into account the cost of the boiler itself and then add the installation costs.
There are so many variables when it comes to boiler replacement that the price could vary somewhat from case to case. A few things that will have an impact on the final cost include:
- Type of boiler being installed (Combi, Regular or System)
- Manufacturer and model
- Installer carrying out the installation
- Whether it’s a like-for-like boiler replacement.
Having said that, the typical cost of a straightforward gas boiler installation is around the £2,300 mark – a large amount for anyone to find, especially if the boiler has broken down unexpectedly.
What is a Boiler Grant?
In general terms, a grant is a payment made to the eligible person in the form of cash or a voucher to either help with or cover the total cost of an item. The most important note about grants is that they don’t have to be paid back.
When it comes to boiler grants, they work in the same way, but the grant is provided to support you with the costs of a brand new boiler.
Are Any Free Boiler Grants Available in the UK?
The Energy Company Obligation (ECO) is a scheme run by the government to help tackle fuel poverty in low income and vulnerable households by offering free heating and insulation grants.
ECO grants are available in England, Scotland and Wales but to be eligible for an ECO boiler grant, you will need to be receiving certain benefits, including:
- Child Tax Credit: Also have an annual household income below a certain threshold (determined by how many people live in the property)y
- Working Tax Credit: Also have an annual household income below a certain threshold (determined by how many people live in the property)y
- Universal Credit: Earned monthly income has to be below a certain threshold (determined by how many people live in the property)y
- Income-related Employment and Support Allowance (ESA)
- Income-based Job Seekers Allowance (JSA)
- Income Support
- Pension Credit: Both Guarantee Credit and Savings Credit or Guarantee Credit only
As well as receiving the relevant benefits, your current boiler must be a non-condensing or condensing unit with an efficiency level of under 86%.
What If I’m Not Eligible for a Boiler Grant?
Should you not meet the eligibility requirements of any of the free boiler grants and schemes we’ve mentioned that doesn’t mean there isn’t an option for you.
By contacting the Energy Saving Advice Service on 0300 123 1234, you will be able to get support and advice based on your circumstances. Another option is to contact your local council who can also provide details of grants and support available near you.
How Could a New Boiler Save You Money?
Modern boilers are designed to be much more energy efficient than older units and it’s the higher level of efficiency that will help to save you money on your energy bills.
All modern boilers have to be condensing by law with an efficiency of at least 92%. This means that for every £1 spent on heating your home, as little as 8p is wasted, a large saving when you consider that older boilers could have efficiencies much lower than this.
Pay Monthly Boiler Schemes
If you’re not eligible for a free boiler grant then the next best option is to pay for a new boiler on finance. Rather than paying for a new boiler upfront, you can make affordable monthly payments over a set period of time, normally no more than 10 years (120 months).
While paying monthly for a new boiler could end up costing more in the long term, you’ll be avoiding the upfront costs of around £2,000 and benefit from:
- Low monthly payments (from £20 a month).
- Installation by a Gas Safe registered engineer.
- Flexible payment options.
Choose to pay for a boiler on finance, rather than saving up to afford all the upfront costs and you’ll be reducing your energy bills sooner rather than later.