How can I pay for my new boiler?

How can I pay for my new boiler?
- By Justin Elliott

Replacing your boiler is probably one of the most expensive things you will need to do in your home. Thankfully it is a once in every decade type of expense, however very few of us will prepare in advance for that inevitable day when your boiler breaks down. At upwards of £3,000 for a new boiler and installation, you will need to think very carefully about how you are going to pay for it.


Unfortunately getting a grant from the government, your council or your energy supplier is not easy. The most likely way is via the Energy Company Obligation (ECO) scheme which offers money towards your new boiler if you are on a low income, on benefits and if your boiler is more than seven years old. You may get partial relief or 100% paid toward your boiler replacement.

Scrappage schemes

Some energy companies are offering what they are calling scrappage schemes. These are independent of the government scheme which was in place a few years ago and no longer exists. These are simply a few hundred pounds towards the cost of your new boiler if bought from that supplier. It is not always the deal it looks like and may actually be a part of the ECO scheme in disguise.

The Green Deal

This government backed loan scheme will allow you to pay for your new boiler at 7% interest. This is a reasonable option for anyone who thinks they will struggle with payments as the loan is paid back via your energy bills and the amount you save should be more than the payments themselves. Many energy suppliers including British Gas are enrolled in the Green Deal and offer boiler replacement under the scheme.

Finance deals

Energy companies and independents offer pay over time finance deals with monthly installments and often with no money down. If considering this option you need to take care to read the small print. This might include how much the total payment will be, what the interest rate is, if you can overpay, if there is a penalty for paying it off early and if it includes a servicing deal.

The interest rate on these deals is often more than a personal loan might be – so you may prefer to contact your bank first to see what they can offer.