The Boiler Upgrade Scheme Extension
We are delighted and encouraged by the government's ongoing commitment to incentivise heat pump adoption. The decision to extend the Boiler Upgrade Scheme (BUS) until 2028 (initially scheduled to end in 2025) represents a welcome step forward by the government. This extension will expedite the shift from conventional fossil fuel boilers to sustainable heating systems.
“As set out in the Government’s Powering Up Britain statement, we have an ambition to phase out all new and replacement natural gas boilers by 2035 so that homes are heated by British electricity, not imported gas. We want to make it as cheap to buy and run a heat pump as a gas boiler by extending the Boiler Upgrade Scheme by three years until 2028.
This extension will be supported by an additional budget allocation for each of these years. We have not yet set a budget level for the extended scheme as we want to see how much demand grows in the short term and any decision on funding will be subject to future Spending Review decisions.
This extension demonstrates the Government’s commitment to delivering our ambition of 600,000 heat pump installations a year by 2028 - giving industry the certainty needed to invest confidently in heat pumps, scale up manufacturing and upskill installers. We will provide further details of the extended Boiler Upgrade Scheme in due course.”
Department of Energy Security & Net Zero
With Autumn just a few weeks away, now is a great time to be thinking about your next heating system. If you’re a homeowner or a business owner in England or Wales and you’re looking to replace your fossil fuel boiler with a more eco-friendly and energy-efficient heating system, the Boiler Upgrade Scheme (BUS) could be a great option for you.
What is the Boiler Upgrade Scheme Grant?
The Boiler Upgrade Scheme is a government grant that offers financial incentives to homeowners and business owners who choose to install low-carbon heating systems. Under the scheme, eligible participants can receive a grant of £7,500 for installing an air source heat pump or a ground source heat pump.
The government’s plan is to reduce the cost of low carbon heating systems, whilst also reducing the need for gas boilers and imported gas. The grant aims to make the transition to eco-friendly heating solutions as accessible and affordable as gas boilers.
Boiler Upgrade Scheme Eligibility Criteria
For the most part, the majority of homeowners and business owners are eligible for the Boiler Upgrade Scheme. That said, you must meet the following criteria:
You must install a low-carbon heating system. Both air source and ground source heat pumps are eligible.
The heat pump must replace an oil, gas, or other fossil fuel or electric heating system. Alternatively, if this is the property's first heating system (e.g. an eligible self-build project), this will qualify. If you already own a heat pump and would like to replace it with a new one, this will not qualify.
The heat pump must provide a complete heating and hot water solution to the property.
The capacity of the heat pump must be 45kW or below.
The project must be completed by an MCS approved installer like Alto Energy.
Basic energy efficiency measures must be met: Cavity wall insulation and minimum loft insulation, must be completed before the heat pump installation.
Self-Build Homes: New self-build homes meeting the Ofgem definition of "Custom Build" are also eligible for the scheme. Custom Build eligibility includes land ownership and must be self-funded by an individual. Anything owned by a company, such as properties for a new build development which are to be sold on, do not qualify. Please contact us for advice around self-build eligibility.
Circumstances Not Eligible for the Boiler Upgrade Scheme Grant
While the Boiler Upgrade Scheme (BUS) offers substantial financial incentives for homeowners and business owners to transition to low-carbon heating solutions, there are certain circumstances that do not qualify for the grant:
Hybrid Installations with a Back-Up Boiler: The grant is not applicable to hybrid heating systems that include a back-up boiler alongside the heat pump. To be eligible, the heat pump must be designed to provide all of the heating and hot water needs of the property without the reliance on a traditional fossil fuel boiler.
Heating Only Heat Pumps: Heat pumps that solely provide heating without catering to the hot water needs of the property are not eligible for the grant. The scheme encourages the adoption of comprehensive heating and hot water solutions for maximum energy efficiency.
Partial Heating Installations: Installations where the heat pump covers only a part of the load defined on the Energy Performance Certificate (EPC) are not eligible for the grant.
For those who meet the eligibility criteria, applying for the Boiler Upgrade Scheme is a straightforward process. This is because we, the MCS accredited installer, will apply and administer the grant with Ofgem, on your behalf.
Looking to purchase a heat pump?
If you’re interested in replacing your fossil fuel system with a heat pump and would like to apply for the Boiler Upgrade Scheme, please get in touch by clicking the link below.