Britain spins cash for clunkers into bucks for boilers

Britain spins cash for clunkers into bucks for boilersEveryone has heard about the success of the cash for clunkers program that took tons of inefficient cars off the road. The folks behind the “Reheat Britain” campaign wondered if a similar program would work for boilers and got major attention from the government.

Chancellor of the Exchequer, Alistair Darling, revealed the government’s plan last week to offer an economic plus to get rid of the not so green machines. Fifty million pounds will be set aside to help families get rid of their G-rated boilers in favor of the far more efficient A-rated type. Each household with a functioning G-rated boiler would receive a £400 grant from the government towards the purchase of a new boiler.

This could be a major leap forward for curbing carbon emissions in the country. The old G-rated boilers are only 70% efficient and can emit up to 1.26 tons of carbon dioxide a year. A plumber in Southern England named Mick Williams started the movement with a single petition and thinks there are economic benefits as well. He said the incentive would “stimulate demand for gas boilers and help manufacturers, plumbers merchants and Gas Safe heating engineers, boosting thousands of small businesses just when the economy needs it."

Theoretically this is a great move to curb carbon emissions and keep British plumbers very busy. But like any other government initiative there are some holes. Britain has at least four million G-rated boilers in operation. If the plan is fully executed a measly 3% of them will be removed.

Furthermore, the lifespan of the greener boilers is half that of the old clunkers. Consumers may use this fact to delay the adoption of an A-grade boiler until their own is barely functional. The £2,000 price tag is also only an estimate, not a flat fee. Many homes may need additional plumbing upgrades to ensure that the boiler functions properly.

One energy consultant thought that boilers don’t have the show-off factor that a brand new car holds. He said, “people are much more prepared to make financial sacrifices to swap their old car for a shiny, new model, but nobody is going to try to keep up with the Joneses with a new boiler.”

The world will be watching as the plan starts in 2010. It may be a small start at 3% but at least it’s a start.

Comments

I've always had a problem with Cash4Clunkers. To me it seems to go against simple supply and demand economics. How can we push all of these new cars into a market already saturated with used and repossessed vehicles (see http://www.repofinder.com)? Now new cars are worth even less, we have more Americans in debt, and eventually more repossessions.

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