The Government has launched a scheme that could see households in England save up to £800 on the cost of a new boiler.
The boiler scrappage scheme was announced during December's Pre-Budget Report.
Up to 125,000 homes could benefit from the initiative, whereby those with G or X rated boilers can apply for a voucher from the Energy Saving Trust that will entitle them to £400 off the price of a new A-rated system.
Some energy companies are expected to match the Government's pledge by offering an additional £400 reduction on the cost of a new system and installation. British Gas has already said it intends to do so.
According to the Heat and Hot Water Industry Council (HHIC), the average cost of a new boiler and installation is around £2,500.
Alternatively, the voucher can be used as part payment for a renewable heating system, such as a biomass boiler or heat pump.
It is hoped the scheme will have multiple benefits, including sustaining work for 130,000 installers and over 25 UK-based boiler manufacturers.
Prime Minister Gordon Brown said the initiative was proof of the Government's commitment to invest in British industries and jobs for the future.
In addition, households are being advised that a new A-class system could cut energy bills by between £200 and £235 a year, while the saving in carbon emissions by replacing 125,000 inefficient boilers would be the equivalent of taking 45,000 cars off the road.
"Householders are naturally reluctant to replace a working boiler even though it is wasteful on energy and so an incentive to do this is vital," said Roger Webb of the HHIC.
"We are delighted that the Government is giving the green light to enable householders to replace an old inefficient boiler with a new energy efficient model and by doing so recognising that a new boiler can really improve energy efficiency."
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