In an exciting day for the heat pump industry, the Boiler Upgrade Scheme (BUS) is now open and accepting new grant applications.
As an MCS certified contractor, as well as part of our Alto Assured Installer Scheme, Alto Energy is registered with Ofgem to administer BUS grant applications for our customers.
What Is The Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is the name of the new grant payment now launched to encourage homeowners and businesses to install low carbon heating systems such as our air source and ground source heat pumps.
Homeowners or business can receive a grant of £5,000 for installing a new air source heat pump, or £6,000 for installing a new ground source heat pump. As an MCS accredited installer, Alto Energy will apply for and administer this grant on our customers behalf meaning we can deduct the full grant amount from the amount payable on our quotations. This mean that going forwards the amount that need to be paid upfront for a heat pump system will be much closer to the cost of a traditional fossil fuel system, thereby making it more affordable for many more homeowners to access the significant carbon savings and running cost benefits of our renewable energy heating systems.
Information For Customers With Live Projects
If your heat pump project with Alto Energy is already underway, here’s what you need to know:
Heat Pump Commissioned Between 1st April - 22nd May
If your heat pump was commissioned between 1st April - 22nd May 2022, and you meet the eligibility criteria, Alto Energy will automatically apply for, and redeem your BUS grant simultaneously.
Such applications are being called “Parallel Applications”, reflecting the fact that we will be both applying for and redeeming the voucher in the same action. This is a special process Ofgem have created for projects already completed, in order to expedite the process. Ofgem have advised that Parallel Applications for grants for eligible projects will take 4 - 6 weeks from application for payment to be made.
Heat Pump Booked For Commissioning From 23rd May Onwards
If your heat pump has already been delivered and/or installed, and it is booked in for commissioning from today onwards, and you meet the eligibility criteria, Alto Energy will automatically apply for your BUS grant.
Once the heat pump is commissioned and the MCS certificate raised, Alto Energy will then apply to redeem your voucher.
Heat Pump Installation Underway But Not Yet Booked For Commissioning
If your heat pump has already been delivered, but has not yet completed installation and been booked in for commissioning, then Alto Energy will apply for your BUS grant when you get your commissioning visit booked in (provided of course that your project meets the eligibility criteria.
Once the heat pump is commissioned and the MCS certificate raised, Alto Energy will then apply to redeem your voucher.
Heat Pump Installation Not Yet Started
For the vast majority of projects that will proceed under the BUS scheme, the grant application will be made by Alto Energy prior to you requiring delivery and installation of the heat pump equipment.
The process for obtaining your grant is the following:
Alto Energy will produce an outline quotation for your project.
Once you’re happy that you want to proceed with a heat pump, you pay us to complete the full MCS designs for your property. If it’s a new build or major renovation project we can do this from plans, otherwise we will need to carry out a site survey to gather detailed information about your project.
After the designs are completed, we will issue a final quotation.
Once you accept the quotation, we will apply to Ofgem for your Boiler Upgrade Scheme grant once we have all the information we need.
The contract can then proceed. The payments you make to us will total the quote amount less the grant amount.
Once the project is finished, we will redeem the voucher and we are paid the grant directly by Ofgem.
Important Note for ALL Bus Grant Applications
Please note that you will receive an email from Ofgem after we have applied, where you will need to confirm that you want us to proceed with redeeming the BUS grant.
Further note, that we may require further information to claim your grant, such as proof your new build qualified as a self-build, or an updated EPC. A member of our team will be in touch if there is any further information that we require.
Ofgem have advised that payment will take around 4 weeks from our application to redeem a BUS grant voucher, provided everything is in order. In all instances, the BUS grant payment will be made directly to Alto Energy. If this results in an overpayment of your project, then we will be in touch to organise a refund.
Interested In The BUS Grant
If you’re in the middle of a heat pump project with us, or right at the start, then please do get in touch with us to find out more.
Who Is Eligible For The Boiler Upgrade Scheme Grant?
WHAT TECHNOLOGIES ARE ELIGIBLE FOR THE BOILER UPGRADE SCHEME?
In short – heat pumps.
The Boiler Upgrade Scheme grant will support the following technologies:
Air source heat pump systems - £5,000 grant
Ground source heat pump systems - £6,000 grant
Heat pump systems with a capacity of 45kW or less will be eligible for the scheme. All projects will need to be completed by an MCS approved installer, like Alto Energy, and have an MCS certificate issued for the project by the MCS approved installer.
WHAT PROPERTIES ARE ELIGIBLE FOR THE BOILER UPGRADE SCHEME?
The Boiler Upgrade Scheme is only available in England and Wales.
All existing domestic and non-domestic buildings are eligible for the Boiler Upgrade Scheme. As with previous grant schemes there will be a requirement for any basic energy efficiency measures to have been completed prior to the heat pump installation. This means that if you have cavity walls they must be filled, and you need a minimum of 270mm rockwool insulation (or equivalent thermal resistance) in the loft. In order to demonstrate this, you will need to have an up to date Energy Performance Certificate (“EPC”) which does not show these measures as being required.
As well as the existing housing stock, the Government also recognises the need to prevent fossil fuel systems being installed in the first place, and to this end new self-build homes are also eligible for the Boiler Upgrade Scheme. In order to be eligible, self-build homes must meet the Ofgem definition of “Custom Build”, which can be found on the Ofgem website.
HYBRID SYSTEMS AND PARTIAL HEATING
In order to be eligible for the Boiler Upgrade Scheme grant, the heat pump must be designed to provide all of the heating and hot water to the property. The scope of the property will be defined by the EPC for that property.
The following situations will not be eligible for a grant:
Hybrid installations with a back-up boiler
Heating only heat pumps, where the heat pump just provides heating and not the hot water
Installations where the heat pump only covers part of the load defined on the EPC
Any Questions?
If you have questions about the Boiler Upgrade Scheme grant, then please do not hesitate to get in touch with our team.