The Mayor of London, Sadiq Khan, is launching a new £10m boiler scrappage scheme that will help small businesses save money on their energy bills, as well as helping to improve the capital’s air quality.

The Mayor’s Cleaner Heat Cashback scheme will provide between 30-40% cashback to small and medium-sized businesses (SMEs) when they replace older boilers, with new, more efficient heating systems.

This is part of the Mayor’s comprehensive programme of air quality measures, and will also help to make London’s workplaces more energy efficient and cut the capital’s carbon emissions.

Commercial gas consumption is currently responsible for 7% of London’s NOx emissions, but as the Mayor’s  measures to cut harmful pollutants from transport take effect, this proportion will increase.

The Cleaner Heat Cashback scheme is part of the Mayor’s £34m Energy for Londoners programme which aims to make London’s homes warm, healthy and affordable, its workplaces more energy efficient, and to supply the capital with more local, clean energy.

Shirley Rodrigues, Deputy Mayor for Environment & Energy, said: “There are thousands of small businesses in London who have older boilers and this hugely innovative scheme not only helps them to save money, but it also reduces carbon emissions and improves the capital’s air quality.

“Businesses could save hundreds of pounds a year on energy bills by switching from an older, inefficient boiler or heating system – and this is exactly the kind of initiative that will help us achieve the Mayor’s ambition of making London a zero-carbon city by 2050.

“Tackling London’s filthy air is one of the Mayor’s top priorities and this is just the latest in a package of measures that he has introduced to improve the quality of the air we breathe.”

The scheme follows the Mayor’s Better Boilers scheme which replaced and repaired inefficient and broken boilers in nearly 500 fuel-poor households.

The Cleaner Heat Cashback scheme is being delivered in partnership with the Energy Saving Trust.

Philip Sellwood, Chief Executive of Energy Saving Trust said: “We are delighted to be supporting the Mayor of London to deliver this ground-breaking scheme. It will help smaller businesses across London to benefit from energy efficiency which in turn will enhance air quality across the city. We hope that other cities across the UK follow the Mayor’s lead and provide similar schemes.”