Boiler Upgrade Scheme 🔥

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Last Updated on 30th May 2024

Boiler Upgrade Scheme: Grants and Eligibility

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

Thinking about upgrading your boiler but worried about the costs? The Boiler Upgrade Scheme could be just what you need. With £450 million invested by the government, this scheme offers grants of up to £7,500 to help cover the installation costs of air source and ground source heat pumps. It's an installer-led programme, so your installer will handle the application, making it easier for you to benefit from this financial support.

Ready to make your home more energy-efficient? Dive in to find out how you can take advantage of this fantastic opportunity.

Key Takeaways

  • Government Funding: The Boiler Upgrade Scheme is backed by £450 million, providing grants of up to £7,500 for the installation of low-carbon heating systems like air source and ground source heat pumps.
  • Application Process: The programme is installer-led, simplifying the application process. Homeowners need to choose an MCS-certified installer who will handle the assessment, application, and voucher redemption.
  • Eligibility and Requirements: Homeowners must have a valid Energy Performance Certificate (EPC). Properties needing loft or cavity wall insulation may need to address these before being eligible.
  • Scheduled Changes in 2024: From 8 May 2024, EPCs with insulation recommendations will be accepted, but property owners must acknowledge understanding any recommendations.
  • Compliance and Enforcement: Installers must adhere to strict standards and regulations. Any misinformation could lead to the withholding or repayment of grants.

Boiler Upgrade Scheme (2024)

How to Apply for the Boiler Upgrade Scheme

To apply for the Boiler Upgrade Scheme, follow these steps:

  1. Choose an MCS-Certified Installer

Use the MCS website to find a certified installer near you. They must be certified to ensure quality and compliance.

  1. Home Assessment

The installer will assess your home and existing heating system to determine eligibility.

  1. Agreement on Quote

If eligible, you and the installer must agree on a quote for the installation.

  1. Grant Application

The installer will apply for the grant on your behalf by providing your details to Ofgem.

  1. Confirmation from Ofgem

Ofgem will contact you to confirm your details and the installer's assessment.

  1. Voucher Redemption

The installer must redeem the grant voucher within 3 months for air source heat pumps or biomass boilers, and within 6 months for ground source heat pumps.

StepActionResponsible Party
1. Choose InstallerFind an MSC-certified installerHomeowner
2. Home AssessmentEvaluate home and heating systemInstaller
3. Agree on QuoteFinalize cost for installationHomeowner & Installer
4. Grant ApplicationSubmit grant application to OfgemInstaller
5. ConfirmationVerify details with OfgemOfgem
6. Voucher RedemptionRedeem grant voucherInstaller

These steps simplify the process and ensure that the grant amount is deducted from the total installation cost. This makes it easier for you to upgrade to a more energy-efficient heating system without the hassle of a complex application process.

What is the Boiler Upgrade Scheme?

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

How Does the Government Boiler Upgrade Scheme Work?

The Boiler Upgrade Scheme (BUS) is a government initiative aimed at helping homeowners in England and Wales by providing grants to make the installation of low-carbon heating alternatives more affordable. By reducing the upfront cost, the scheme encourages the use of air source heat pumps (ASHP) and ground source heat pumps (GSHP).

Here is a detailed overview of how the scheme works:

  1. Certified Installer Selection: You need to select an MCS-certified installer to be eligible for the scheme.
  2. Home Assessment: The installer conducts a home assessment to determine the suitability of heat pumps for your property.
  3. Quotation Agreement: Agree on a quotation with the installer. The grant value will be deducted from this final price.
  4. Grant Application: The installer applies for the grant on your behalf.
  5. Ofgem Confirmation: You receive confirmation from Ofgem regarding the grant approval.
  6. Voucher Redemption: Ensure the voucher is redeemed before it expires to benefit from the discount.

Available Grants and Budget Allocation

The grants offered under the Boiler Upgrade Scheme have specific allocations and values. Here is a breakdown:

Grant TypeGrant AmountBudget Allocation (2022-2025)
Air Source Heat Pumps (ASHP)£7,500£450 million
Ground Source Heat Pumps (GSHP)£7,500£450 million

The government has allocated £450 million to the scheme, ensuring substantial support for homeowners transitioning to low-carbon heating solutions. By 2025, this budget aims to facilitate extensive uptake of heat pumps across the region.

Compliance and Enforcement

To maintain the integrity of the scheme, there are specific compliance and enforcement measures in place:

  • Installer Obligations: Installers must meet set standards and follow regulations.
  • Voucher Validity: Vouchers are time-limited and must be redeemed before expiration.
  • Eligible Properties: Only eligible properties can benefit, as determined by the scheme's criteria.

By simplifying the process and providing financial incentives, the Boiler Upgrade Scheme aims to make low-carbon heating technologies more accessible and affordable, helping you contribute to the UK's net-zero emissions target for 2050.


Which technologies are eligible for the Boiler Upgrade Scheme?

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

Under the Boiler Upgrade Scheme, several low-carbon heating technologies qualify for grants. These grants aim to alleviate the higher costs associated with these eco-friendly alternatives compared to traditional fossil fuel boilers.

Air Source Heat Pumps (ASHP)

Air Source Heat Pumps (ASHP) extract heat from the outside air to warm your home and water. They are efficient even in lower temperatures and can reduce your carbon footprint significantly.

  • Grant Amount: £7,500
  • Efficiency: Up to 300%
  • Typical Installation Cost: £8,000 - £14,000

Ground Source Heat Pumps (GSHP)

Ground Source Heat Pumps (GSHP) use underground heat to provide heating and hot water. They offer greater efficiency but come with higher installation costs due to the need for ground works.

  • Grant Amount: £7,500
  • Efficiency: Up to 400%
  • Typical Installation Cost: £13,000 - £35,000

Water Source Heat Pumps (WSHP)

Water Source Heat Pumps (WSHP) utilize the natural heat from water bodies like rivers or lakes. They are highly efficient but require proximity to a suitable water source.

  • Grant Amount: £7,500
  • Efficiency: Up to 500%
  • Typical Installation Cost: £10,000 - £25,000

Biomass Boilers

Biomass Boilers burn organic materials like wood pellets to heat your home. They are a renewable alternative to traditional boilers but require space for fuel storage.

  • Grant Amount: £5,000
  • Efficiency: Up to 90%
  • Typical Installation Cost: £9,000 - £21,000
TechnologyGrant AmountEfficiencyTypical Installation Cost
Air Source Heat Pumps (ASHP)£7,500Up to 300%£8,000 - £14,000
Ground Source Heat Pumps£7,500Up to 400%£13,000 - £35,000
Water Source Heat Pumps£7,500Up to 500%£10,000 - £25,000
Biomass Boilers£5,000Up to 90%£9,000 - £21,000

How much funding is available?

Under the Boiler Upgrade Scheme, there's a significant amount of funding available to help you switch to low-carbon heating. The scheme has allocated £450 million over three years from 2022 to 2025. Furthermore, an additional £1.5 billion has been announced for the extension until April 2028. This funding aims to encourage the adoption of renewable heating systems and reduce greenhouse gas emissions.

Funding Breakdown

Here's a detailed breakdown of how the funding is distributed:

Funding PeriodAmount AllocatedAdditional FundingTotal Funding
2022-2025£450 million-£450 million
2025-2028-£1.5 billion£1.5 billion

What Happens If I Applied To The Boiler Upgrade Scheme Before 23 October 2023?

If you applied before 23 October 2023, the original terms and funding allocations of the scheme apply to your application. The administration and processing of vouchers will continue as per the initial rules, ensuring a smooth transition for your installation.

  • Your application status remains unaffected.
  • Pre-approved vouchers will be honoured.
  • Scheme regulations from the original application date remain applicable.

Things to watch out for:

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

The Boiler Upgrade Scheme offers significant incentives but there are crucial aspects to watch out for to make the most out of it.

Compliance And Enforcement

Under Part 5, installers have obligations to provide correct information to the Authority. Any misinformation can lead the Authority to withhold grant payments, revoke vouchers, or demand repayment of the grant. Make sure your installer fully understands and complies with these obligations to avoid complications.

Valid EPC Requirements

Eligibility for the grant relies on your Energy Performance Certificate (EPC). If your EPC has recommendations for loft or cavity wall insulation, you may need to address these before applying. This ensures your property maximises the efficiency of the low-carbon heating system. As of 8 May 2024, Ofgem requires valid EPCs but still recommends insulation. It is advisable to discuss energy efficiency measures with your installer to ensure optimal heat pump performance. For new builds, your home likely meets the EPC standard. Listed buildings may have exemptions worth checking.

RequirementDetail
Incorrect Information By InstallersMay lead to withholding, revocation, or repayment of grants.
Valid EPC Without InsulationRequired; insulation highly encouraged for optimal efficiency.
Insulation DiscussionsRecommended by Ofgem for energy efficiency.
New Builds ComplianceLikely meets EPC standards.
Listed Buildings ExemptionsPossible; check requirements.

Additional Costs

Though the grant covers a significant part of the cost, additional expenses like upgrading insulation can arise. A thorough discussion with your installer about potential extra costs ensures there are no surprises.

Staying Updated about the BUS

The scheme's terms and regulations can change. Regular updates by the Authority on its website ensure you stay informed about any new requirements or alterations in the scheme.

Keeping these aspects in mind will help you navigate the Boiler Upgrade Scheme effectively and make the most out of the available grants.


Government targets

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

The UK government has ambitious targets to achieve net zero emissions by 2050. The Boiler Upgrade Scheme (BUS) plays a significant role in this transition. By incentivising homeowners in England and Wales to adopt low-carbon heating systems like heat pumps and biomass boilers, the scheme tackles carbon emissions from households.

One of the key elements of the government targets is to make low-carbon heating technologies affordable and accessible. By 2023, BUS increased grants for heat pumps to £7,500. This financial support aims to bridge the cost gap between traditional fossil fuel boilers and modern low-carbon systems.

Target YearKey GoalSupport Mechanism
2023Increase grants for heat pumps to £7,500Boiler Upgrade Scheme (BUS)
2050Achieve net zero emissionsComprehensive policy and financial incentives
2028Extend BUS to increase adoption of low-carbon heatingAdditional funding and grants

Ensuring low-carbon heating technologies are no more expensive to buy and run than traditional systems encourages widespread adoption. This goal aligns with the broader aim of reducing overall household carbon footprints. The government works with industry to drive down costs and develop efficient systems.

If your EPC recommends insulation, complete the necessary upgrades before applying for the grant. An efficient home maximises the benefits of low-carbon heating, contributing to the UK’s net zero target.


BUS Numbers at a glance:

Your Guide to the Boiler Upgrade Scheme: Grants and Eligibility

Here are the key statistics related to the Boiler Upgrade Scheme that can help you understand its scope and impact at a glance:

CategoryFigure
Grant Amount per Heat Pump£7,500
Grant Amount per Biomass Boiler£5,000
Initial Funding Till 2025£450 million
Scheme Extension AnnouncedUntil April 2028
Annual Reports to Secretary of StateMonthly
Publish Guidance to InstallersRequired
Expected Grant Applications In 2023Approximately 30,000
Percentage of UK's Target for Net Zero by 2050Significant Contribution

These figures illustrate the substantial financial incentives available under the scheme. The increased grant amount of £7,500 for heat pumps in 2023 further supports your transition to low-carbon heating, making it more attractive and feasible.

The scheme's total funding of £450 million underscores the government's commitment to facilitating the shift to renewable heating technologies. By extending the scheme until April 2028, the government aims to provide sustained support, ensuring a broader adoption of these technologies over time.

Monthly reporting to the Secretary of State ensures transparency and ongoing assessment of the scheme's impact and effectiveness. The mandatory publication of guidance to installers guarantees that you receive consistent and reliable information.

The anticipated 30,000 grant applications in 2023 indicate a high level of interest and engagement, pointing towards the scheme's growing popularity and acceptance among homeowners.

By participating in the Boiler Upgrade Scheme, you contribute to the UK's journey towards achieving net zero emissions by 2050, making a significant positive environmental impact.

Frequently asked questions

What is the Boiler Upgrade Scheme (BUS)?

The Boiler Upgrade Scheme (BUS) is a government initiative in England and Wales providing grants for low-carbon heating installations like heat pumps and biomass boilers. It aims to support renewable heating systems and improve energy efficiency in homes.

How much funding is available through the BUS?

The BUS has a total funding allocation of £450 million, with grants available until April 2028. This funding supports the installation of renewable heating systems in homes across England and Wales.

Who is eligible for the Boiler Upgrade Scheme?

Eligibility for the BUS requires the property to have a valid Energy Performance Certificate (EPC). You must own the property, or it can be a business, second home, or rental property. The heating system being replaced should be a fossil fuel system, such as oil, gas, or LPG.

What changes are coming to the BUS in 2024?

Starting from 8 May 2024, the requirement for a valid EPC generated in the last 10 years remains, but the need for no outstanding recommendations for loft and cavity wall insulation on the EPC will be removed.

Is the Boiler Upgrade Scheme available to people over 60?

Eligibility for the BUS is based on property criteria rather than age. Over 60s can apply if their property meets the necessary requirements, including having a valid EPC and replacing a fossil fuel system.

How much are the grants offered through the BUS?

The grants provided by the BUS can vary. For example, the grant amount might be different based on the type of heating installation. Specific amounts are detailed in the scheme guidelines and are subject to change as funding allocations are updated.

Why is home insulation important for the BUS?

Well-insulated homes ensure that heating systems work efficiently, which is essential for maximising the benefits of low-carbon installations. Proper insulation helps reduce energy consumption and improves overall home energy performance.

How many grant applications are expected in 2023?

It is expected that approximately 30,000 grant applications will be made through the BUS in 2023. This reflects the growing interest in renewable heating systems and government support for such installations.

Will the BUS be available until 2028?

Yes, the Boiler Upgrade Scheme has been extended and will be available until April 2028, with increased funding to support more households in installing low-carbon heating systems.

Is The Boiler Upgrade Scheme Worth It?

The Boiler Upgrade Scheme aims to reduce carbon emissions and promote cleaner heating. With grants up to £7,500, it helps make the shift to low-carbon heating systems like heat pumps and biomass boilers more affordable. 30,000 grant applications are expected in 2023 alone, reflecting high demand and potential savings.

CriteriaDetails
Grant AmountUp to £7,500
Expected Applications (2023)30,000
Scheme ImpactPromotes cleaner heating, reduces emissions and lowers energy bills

Is The Boiler Upgrade Scheme Still Available?

Yes, the scheme has been extended until April 2028. With an initial funding of £450 million over three years (2022-2025), an additional £1.5 billion has been allocated, ensuring continued support for renewable heating systems.

Funding PeriodAmount
2022-2025£450 million
2025-2028£1.5 billion additional funding

Who Is Entitled To A Grant For A New Boiler?

Homeowners looking to switch to low-carbon heating options are eligible, provided their Energy Performance Certificate (EPC) does not mandate loft or cavity wall insulation. For new builds, most already meet the EPC standard. Listed buildings might be exempt depending on specific conditions.

Eligibility CriteriaDetails
General HomeownersMust not have loft or cavity wall insulation needed
New BuildsUsually meet EPC standards
Listed BuildingsPossible exemptions

What Are The Changes To The Boiler Upgrade Scheme In 2024?

From 8 May 2024, valid EPCs with insulation recommendations will be accepted. Installers will discuss energy efficiency benefits like loft and cavity wall insulation with property owners. Property owners must acknowledge reading and understanding any EPC recommendations.

ChangeDetails
EPC With Insulation RecommendationsNow accepted from 8 May 2024
Installer RequirementsDiscuss energy efficiency benefits with owners
Owner AcknowledgementMust confirm understanding of EPC recommendations

Can Over 60s Get Help With A New Boiler?

The Boiler Upgrade Scheme does not specifically target age groups but focuses on property eligibility based on EPC standards and existing heating systems. Over 60s may benefit if they meet the scheme's general criteria.

CriteriaDetails
Age-Specific TargetNone
General EligibilityBased on EPC standards and existing heating systems