£200 million of new UK public money is being made available to encourage households to save energy and save money. The new schemes include a bolier ‘scrappage’ scheme to encourage homes to adopt new modern energy efficient boilers, new schemes to encourage homes to generate electricity, and ongoing money to help people insulate their homes. On top of this the government have announced a new scheme to promote electric vehicles to businesses.
The boiler scrappage scheme will provide up to £400 towards the cost of installing new condesnsing boiler. New boilers are usually energy rated as ‘A’ and could save a up to £210 each and every year at current energy tariffs. But be warned, a new boiler will cost a lot more than £400 and there may well be installation and other plumbing costs involved, and ongoing maintainance costs. See www.energysavingtrust.co.uk
Homes that generate power from solar (photvoltaic) panels or wind turbines will be a ble to earn tax free payments of 36p from their local energy company for every unit they produce. If homes generate more than they can use they can sell the surplus on, again for a cash free payment of 5p for every unit sold. Other forms if sustainable energy such as ground source pumps that produce clean heating will be covered by a separate scheme from 2011.
The Warm Front scheme, which has had some critics, will get an extra £150 million to help old age pensioners , families with children aged under 16 and people with disabilities insulate their home – the cheapest and most effective way to save money, energy and reduce carbon emissions. Means tested grants can be awarded for insulation, improvements to heating systems and for a connection to the gas main. See www.warmfront.co.uk
Electric cars and vans wil be exempt from company car tax for five years from next April and there is now a first year capital allowance equalling the total cost of the vehicle – which makes no sense to me but my accountant said this is very attractive as the cars and vans can be treated as investments!