Turn your house green and cash in

The Pre-Budget Report revealed new money is available to encourage households to save energy
James Charles

If the clunky old boiler in your house needs replacing or installing a wind turbine on the roof appeals, you may be able to claim hundreds of pounds from the Government to help you to realise your goal.
A package of green incentives in this week’s Pre-Budget Report is aimed at helping households to cut energy bills and combat global warming. The Government hopes that 200,000 homeowners will be helped by a range of measures that is worth £200 million.
However, if you want to benefit, you may have to act fast because the money available will be capped.
Scrap your old boiler

The Chancellor Alistair Darling announced plans for a new boiler scrappage scheme similar to the programme launched last year to encourage drivers to trade in their old cars.
Households will be able to apply for a £400 incentive towards the cost of installing a new condensing boiler. Such boilers are usually A-rated — A is the most energy-efficient rating — and it is estimated that installing one will save a typical household £210 a year in energy bills.
Only households with the most inefficient G-rated boilers will qualify for the scrappage scheme, but competition for funds could still be fierce. About 4.5 million homes are believed to have a G-rated boiler but, with £50 million earmarked, only 125,000 will be able to upgrade their boilers at a reduced cost when the scrappage scheme is launched early next year. Details are still to be finalised by the Department of Energy and Climate Change.
David Weatherall, from the Energy Saving Trust, says: “We expect the scheme to be considerably oversubscribed, so homeowners should apply at the earliest opportunity.”
You can find out the efficiency rating of your boiler at www.sedbuk.com, which has a database of information on most boilers in the UK.
As well as helping householders to achieve valuable savings on their energy bills, switching to efficient boilers is also good for the environment. Replacing all G-rated boilers with A-rated models would save almost 4.5 million tonnes of CO2 a year, equivalent to the emissions from 830,000 households.
However, homeowners have been warned not to pay for a new system without checking out the potential savings first. Even if you qualify for the scheme, you will still have to shoulder most of the expense.
The total cost of changing your boiler can vary between £1,500 and £3,000. Radiators and pipes may need to be replaced, so it is recommended that householders get a range of quotes from local contractors.
Annie Shaw, of the consumer personal financial help website CashQuestions.com, says: “The boiler scrappage scheme looks attractive, but consumers should beware of hidden costs unless their old boiler is actually on the point of packing up.
“Modern condensing boilers can be more expensive to fit and maintain than older less fuel-efficient models. While you will find that your gas bills will go down with a modern boiler, don’t underestimate the potential cost of repairs and parts.”
The British Gas website has a calculator which provides information on how much you can save by upgrading your current boiler. Visit britishgas.co.uk for details.
For more information on the boiler scrappage scheme, homeowners should contact the Energy Saving Trust on 0800 512012 or visit energysavingtrust.org.uk.
Make money from wind power
Homeowners who generate their own power from wind turbines and solar panels will be able to earn hundreds of pounds a year tax-free under plans outlined on Wednesday.
Under the proposed new Clean Energy Cash Back tariff, which is scheduled to launch on April 10 next year, will see homeowners paid by their local energy company for every unit of renewable energy they generate at home. Homeowners will be paid about 36.5p for every unit of electricity generated that they use in their home, although this will vary depending on how the electricity is generated. The average household could be paid up to £900 tax-free, according to the Department for Energy and Climate Change.
Those who generate more than they need can sell the surplus energy back to their local supplier, picking up a second payment of about 5p per unit in return. Both payments will be tax-free.
The new scheme simplifies the rules for homeowners who generate their own power. Under the current scheme, homeowners receive cash payments for selling energy to the national grid, but the administrative burden of registering for the scheme is high while the price paid for the electricity by some companies can be low. Under the terms of the new energy feed-in scheme, the Government will establish a standard price per unit for generating electricity at home, which all local suppliers must pay.
The scheme will cover only renewable technologies, such as wind turbines or solar (photovoltaic) panels, which are used to generate electricity. Renewable heat generators, such as ground-source heat pumps, which heat water but don’t generate any power, will be covered by a separate scheme, which will be launched in 2011.
Under current government proposals, homeowners who installed renewable energy devices before the middle of July this year will not qualify for Clean Energy Cash Back, but will be transferred on to a similar tariff allowing households to sell back energy at a rate of 5p per unit. However, the standard rate that these households will be paid for generating electricity will be lower.
The cost of installing a solar electricity system is typically between £8,000 and £14,000, but can vary depending on the size and type of equipment used, according to the Energy Saving Trust. Wind Turbines cost from £1,500 for small roofmounted units to £20,000 for mast mounted systems.
For more information on generating energy at home and the new Clean Energy Cashback tariff, contact the Energy Saving Trust on 0800 512012.
Insulate your home
The Chancellor provided a big shot in the arm to the Warm Front scheme, which is aimed at helping pensioners, families and the disabled to make their homes more energy-efficient. He promised an extra £150 million next April to provide improvements in heating and insulation for 75,000 households. The Warm Front budget was set to plummet next year as the scheme ran out of cash.
Under the terms of the scheme, established in 2000, homeowners can apply for grants of up to £3,500 to make improvements to heating systems and insulation. Households that are not connected to the gas network can apply for grants of up to £6,000. The grants are available to those on means-tested benefits over the age of 60, living with children under 16, or homeowners claiming a disability benefit or allowance.
The scheme has been criticised in recent months for the delays faced by applicants seeking improvements to their home. It warns homeowners that insulation work can take between three and six months to complete and heating works may take up to six months to finish.
The scheme is administered on behalf of the Government by Eaga, an energy outsourcing company that specialises in renewable energy. For more information, visit warmfront.co.uk; call 0800 3162805.
Make money from wind power
Homeowners who generate their own power from wind turbines and solar panels will be able to earn hundreds of pounds a year tax-free under plans outlined on Wednesday.
Under the proposed new Clean Energy Cash Back tariff, which is scheduled to launch on April 10 next year, will see homeowners paid by their local energy company for every unit of renewable energy they generate at home. Homeowners will be paid about 36.5p for every unit of electricity generated that they use in their home, although this will vary depending on how the electricity is generated. The average household could be paid up to £900 tax-free, according to the Department for Energy and Climate Change.
Those who generate more than they need can sell the surplus energy back to their local supplier, picking up a second payment of about 5p per unit in return. Both payments will be tax-free.
The new scheme simplifies the rules for homeowners who generate their own power. Under the current scheme, homeowners receive cash payments for selling energy to the national grid, but the administrative burden of registering for the scheme is high while the price paid for the electricity by some companies can be low. Under the terms of the new energy feed-in scheme, the Government will establish a standard price per unit for generating electricity at home, which all local suppliers must pay.
The scheme will cover only renewable technologies, such as wind turbines or solar (photovoltaic) panels, which are used to generate electricity. Renewable heat generators, such as ground-source heat pumps, which heat water but don’t generate any power, will be covered by a separate scheme, which will be launched in 2011.
Under current government proposals, homeowners who installed renewable energy devices before the middle of July this year will not qualify for Clean Energy Cash Back, but will be transferred on to a similar tariff allowing households to sell back energy at a rate of 5p per unit. However, the standard rate that these households will be paid for generating electricity will be lower.
The cost of installing a solar electricity system is typically between £8,000 and £14,000, but can vary depending on the size and type of equipment used, according to the Energy Saving Trust. Wind Turbines cost from £1,500 for small roofmounted units to £20,000 for mast mounted systems.
For more information on generating energy at home and the new Clean Energy Cashback tariff, contact the Energy Saving Trust on 0800 512012.
Insulate your home
The Chancellor provided a big shot in the arm to the Warm Front scheme, which is aimed at helping pensioners, families and the disabled to make their homes more energy-efficient. He promised an extra £150 million next April to provide improvements in heating and insulation for 75,000 households. The Warm Front budget was set to plummet next year as the scheme ran out of cash.
Under the terms of the scheme, established in 2000, homeowners can apply for grants of up to £3,500 to make improvements to heating systems and insulation. Households that are not connected to the gas network can apply for grants of up to £6,000. The grants are available to those on means-tested benefits over the age of 60, living with children under 16, or homeowners claiming a disability benefit or allowance.
The scheme has been criticised in recent months for the delays faced by applicants seeking improvements to their home. It warns homeowners that insulation work can take between three and six months to complete and heating works may take up to six months to finish.
The scheme is administered on behalf of the Government by Eaga, an energy outsourcing company that specialises in renewable energy. For more information, visit warmfront.co.uk; call 0800 3162805.
Case study: Keeping warm — and saving on energy bills
Joan Wilson, from Daisy Bank, in Abingdon, Oxfordshire, applied for free loft and cavity insulation two weeks ago under a scheme run by her local authority.
The 75-year-old contacted her council after reading about Warm Front, the Government- funded programme to help homeowners to reduce their energy bills.
Although she does not qualify for Warm Front because she does not claim a benefit, Mrs Wilson is seeking to enrol in a similar scheme offering free improvements to those aged over 70.
She says: “I thought it was a good idea to apply for free loft insulation because you can save money on your energy bill. It would also help if we were going to sell our home.”
Mrs Wilson and her husband also receive the winter fuel allowance of £120 each, which goes towards reducing their fuel bill even further.
There are more than 100 schemes running across the country designed to improve energy efficiency and to reduce bills by providing funds to improve insulation in the homes of the elderly and those on benefits. Even if you are not a pensioner or claiming benefits, you can apply for a significant reduction in the cost of insulating your home.

Make way for electric white van man
The Chancellor announced that all electric vehicles would be exempt from company car tax for five years from next April, encouraging businesses to offer lower emission vehicles to employees.
Will Bush, of Ernst & Young, the accountant, says: “These incentives could persuade greener householders to sacrifice part of their salary in exchange for the use of a electric company car.”
Alistair Darling also promised that electric vans will be exempt from the van benefit charge for five years. He also offered a first-year capital allowance up to the full cost of a new electric van, which means that the purchase of the vans would be classed as an investment in the business rather than a company vehicle for tax purposes.
The Government hopes to raise the number of electric vehicles bought by businesses in the UK. Last year businesses purchased 900,000 vehicles, of which fewer than 50 were thought to be electric.
There will be future changes in the thresholds for company car tax, which are based on the level of a car’s CO2 emissions. The thresholds are to be edged down by 5g of C02 per km from 2012, falling to a new lower 10 per cent band of 99g/km.
The 10 per cent tax band currently stands at 120g/km and accountants estimate that the tougher limits will push thousands of company cars into higher tax bands. This could add up to £120 million to the tax bill of UK businesses from 2012.
There will also be a change in the figure used to calculate the tax paid on private fuel used in company cars. This will rise from £16,900 to £18,000 and for a company van from £500 to £550.