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How to Pay for a New Boiler on a Tight Budget

How to Pay for a New Boiler on a Tight Budget

A functioning boiler is a household essential. It provides heating to keep the occupants warm, as well as providing hot water (depending on the type of boiler system). However, boilers do not come cheap. Thus, when you need a replacement is often following a breakdown. There can be worries about how to fund a new boiler, especially for those households on a tight budget. This article will provide further information on the typical costs of a new boiler. It also covers current boiler grants in the UK that may be available including eligibility criteria.

In addition, we cover what financing involves and which suppliers commonly offer boiler finance.

What Are the Typical Costs of a New Boiler?

Costs of installing a new boiler will vary depending on:

  • Type of boiler you need or choose
  • Location of the boiler. This includes if there is a plan to move the location of the boiler from where the previous boiler is.
  • Any extras such as chemical flushes, filters, or smart controls

Typical costs of the boiler unit itself can vary between £500 and £2,500. It depends on the type of boiler you need, the boiler size, and the model. A heat-only boiler can cost between £500 and £2,500, whereas a combi boiler that also provides hot water direct from the mains will vary between £600 and £2,000.  Combi boilers benefit households as a tank is not required, therefore saving both money and space. However, not all properties would be suitable.

Meanwhile, a green option such as a biomass boiler would commonly range between £7,000 and £15,000 before any grants. This may not be an option for those on a tight budget. For more information on which type of boiler would be most suitable for your property, please contact a qualified heating engineer who can advise further. In addition to the boiler cost, there will also be installation costs, plus the costs of any extras selected.

What Boiler Grants are Available and What is the Criteria?

There are a couple of grants currently available deepening on the household circumstances and type of boiler to be installed, as follows:

  • Energy Company Obligation (ECO) Scheme

The ECO is a scheme that has been set up by the big energy companies to provide grants towards the cost of replacing an old boiler. Energy companies with more than 150,000 customers are mandatory members of the scheme aiming to make homes more efficient.
In order to be eligible for the ECO, the applicant must own their own home. Someone who resides within the property would need to be a claimant of specific benefits such as pension credit or universal credit. Unfortunately, the process of applying to the ECO is not practically streamlined, there are two steps.

  • Firstly, ensure that you meet the criteria. If the property is based within England or Wales visit the Simple Energy Advice website. However, if the property is in Scotland, visit Home Energy Scotland’s website.
  • If eligible, next contact a supplier directly in order to proceed with a scheme application.
  • Domestic Renewable Heat Incentive (RHI)

This government grant scheme is to assist with reducing the reliance on fossil fuels and to help meet carbon emission reduction targets.  The scheme has been set up to help up to 25,000 households with the costs of installing green heating systems. This includes systems such as biomass boilers, solar water heating, and heat pumps. The eligibility is that the applicant must own their own home in England, Scotland, or Wales. Further details on this scheme and how to apply can be found on the government’s website.

What is Boiler Finance?

Boiler finance is a method of spreading the cost of installing a new boiler.  This is particularly useful should the household not meet any of the eligibility requirements for the grantsabove.

Boiler finance enables the installation to be complete without having to fund the entire costs upfront. Often there is no deposit to pay, and interest can be low too.

As long as you have a good credit rating to apply for the finance, there are usually flexible options available. Thus allowing you to spread the cost of the installation between 2 and 10 years.

What is the Application Process?

A standard credit check will be required when applying for boiler finance through a supplier.

The applicant would need to be over 18 years of old in order to apply for boiler finance, have resided within the UK for at least 3 years, and be able to prove an income source in order to cover the repayments.

Which Suppliers Offer Boiler Finance?

There are many suppliers on the market that offer boiler finance. This includes big energy companies such as British Gas, manufacturers direct such as Worcester Bosche, as well as online boiler websites such as Boiler central, BOXT, and Heatable. Therefore, providing you with plenty of choices.

The offerings will vary between the suppliers. Therefore it is always worth shopping around. However, in order to protect the applicant’s credit score, do not apply to multiple suppliers.

Summary

The cost of new boilers is not small, however, if you have a tight budget, there are ways to reduce the cost via a grant if eligible. Or, to spread the costs by the use of boiler finance. These days there are many methods of buying a new boiler and arranging the installation. Either directly from the manufacturer via a large national supplier such as British Gas or via using a modern and simple process of ordering online.

Whichever method the homeowner feels most comfortable with, there is plenty of assistance and advice available for those on a tight budget. This can ensure that the boiler is correct for the household needs. Consider reading plenty of boiler reviews online before purchasing.

However, should you need specific advice regarding the type of boiler most suitable for your household needs, book a consultation with a qualified heating engineer. They will ensure you select the most suitable boiler option. Typically boilers should last up to 10 years and therefore the boiler needs to be optimized for the property.

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