Boiler Upgrade Scheme

Understanding the Boiler Upgrade Scheme

Switching from a traditional boiler to a low-carbon heating alternative will be more affordable. The Boiler Upgrade Scheme (BUS) helps homeowners with an upfront payment towards the cost of an energy-efficient heating system, such as an air source heat pump. So if your current heating system is getting creaky and it’s time to shop around, we think heating that’s cleaner and more sustainable could be worth a look. And here’s how it works.

What is the Boiler Upgrade Scheme?

From April 2022, the Boiler Upgrade Scheme will replace the Green Heat Grant and will offer upfront help to cover the cost of changing from a gas boiler to lower-carbon heating. It’s part of the government’s plan to drive down the cost of green tech so it’s no more expensive to buy and run than traditional boilers. Under the scheme, homeowners in England and Wales can get £7,500 off the cost of new air source heat pumps. And that will make a real difference to your initial outlay.

How the Boiler Upgrade Scheme works

Once you’ve chosen the right heating system for your home (the criteria for ground and air source heat pumps are very different, so you’ll need to find out more before choosing), installers will then apply for the grant on your behalf and reduce it from the cost of your heat pump. And it’s as easy as that.

You’ll be eligible if:

• You’re a home or small business owner
• Your home or business is in England or Wales
• The property has an energy performance certificate (EPC) less than 10 years old

Things to watch out for:

As long as your EPC doesn’t have recommendations for loft or cavity wall insulation you should be eligible for the grant. If it does, then you’ll probably need to get the insulation work done before applying. Otherwise, all that lovely clean heat you’ve been generating with a heat pump will be lost through your walls and ceiling – not the most eco-friendly approach, we’re sure you’ll agree! For new builds, chances are your home already meets the EPC standard, and if you own a listed building, you may be EPC or insulation exemption – so worth checking out in more detail beforehand.

Government targets

The BUS is part of the government’s overall Heat and Buildings Strategy, which aims to incentivise households to install low-carbon heating systems in a fair and affordable way. It’s an alternative to taking out a government grant for a new boiler and will significantly reduce the UK’s dependency on fossil fuels and exposure to global price spikes. It will also support up to 240,000 jobs across the UK by 2035. And don’t worry, you won’t be forced to remove your recently installed fossil fuel boilers anytime soon, but the long-term target is to switch everyone over eventually.

Numbers at a glance:

• £450 million will be invested in the 3-year Boiler Upgrade Scheme – part of more than £3.9 billion of new funding to decarbonise heat and buildings
• £60 million innovation fund launched to make clean heat systems easier to install and cheaper to run
• Big cost reductions expected by 2025 as the market expands and technology develops

Don’t miss out

You can apply for the BUS as long as the funding’s available, so it’s a good idea to make your application as and when you’re ready to. And if you’d like to know more about how we can help you install an air source heat pump of your very own, you can start the journey here – we’ll talk you through everything you need. And as well as the Boiler Upgrade Scheme, we also offer 5-years interest-free credit (0% APR) – get in touch today to find out more.