What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a £7.5k government grant towards the cost of a heat pump system, in England and Wales. To date we have installed over 250 heat pump systems under the Boiler Upgrade Scheme. The process is very straightforward, particularly for existing properties with an in-date (less than 10 year old) Energy Performance Certificate. For new-builds and conversions, eligibility is a little more complicated but generally straightforward, if the following requirements are met and can be evidenced:
- The land, property and building work is owned and funded by an individual(s), rather than a company (the intention here is to prevent large scale developers from accessing the fund.
What grants are available?
The Boiler Upgrade Scheme (BUS) supports the decarbonisation of heat in buildings. It provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.
On Thursday 21 September 2023, the Department for Energy Security and Net Zero issued a change notice in accordance with BUS Regulation 13(4) to increase the BUS grant level for air source heat pumps and ground source heat pumps.
Acting on behalf of property owners, installers can apply for:
£7,500 off the cost and installation of an air source heat pump.
£7,500 off the cost and installation of a ground source heat pump, including water source heat pumps.
£450 million of grant funding is available over three years from 2022 to 2025. In March 2023, the Department for Energy Security and Net Zero announced an extension to the BUS from 2025 until April 2028. On 18 December 2023, the government announced £1.5 billion additional funding for the BUS extension over three years.
On 2 October 2024, the Department of Energy Security and Net Zero issued a notice to give Ofgem the ability to over-allocate Boiler Upgrade Scheme vouchers up to £200 million. This is an additional £50 million on top of the existing £150 million budget for this financial year.
Are you eligible?
The scheme is open to domestic and non-domestic properties in England and Wales.
New build properties are not eligible for the scheme, with the exception of self-builds that have:
- Never been owned by a business or organisation.
Grants are not available for:
- Social housing – that is, any rental or owned accommodation that’s provided at lower than market value to people that could not have afforded it otherwise (including arrangements like shared ownership).
- Properties that have already received funding from government or an Energy Company Obligation for the purchase or installation of the heat pump or biomass boiler.
For more details on the scheme please visit: https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/property-owners