Our guide to the Boiler Upgrade Scheme

f you’re looking to make your home more energy-efficient and future-proof, the Boiler Upgrade Scheme (BUS) is here to help. This UK government initiative supports homeowners in England and Wales to switch to low-carbon heating systems, like heat pumps or biomass boilers.

With heating responsible for a significant share of UK carbon emissions, adopting sustainable technologies is a vital step towards meeting climate goals – and now, it’s easier and more affordable than ever.

What’s new with the Boiler Upgrade Scheme?

As of November 2024, the government has announced several enhancements to the Boiler Upgrade Scheme:

Eased Planning Restrictions: Planning rules have been relaxed to facilitate the installation of heat pumps. Notably, the requirement for heat pumps to be installed more than one metre away from a property’s boundary has been removed, simplifying the installation process for many homeowners.

Increased Funding: An additional £30 million has been allocated for the 2024/2025 financial year, raising the total budget to £180 million. For the 2025/2026 financial year, the budget has been set at £295 million, reflecting the government’s commitment to promoting low-carbon heating solutions. Ofgem

Higher Grant Values: Homeowners can now receive up to £7,500 towards the cost and installation of both air source and ground source heat pumps, making these technologies more accessible.

What funding is available?

nder the updated scheme, homeowners can apply for:

• £7,500 towards the cost of an air source heat pump (ASHP)
• £7,500 towards the cost of a ground source heat pump (GSHP)
• £5,000 towards the cost of a biomass boiler, applicable to properties in rural areas not connected to the gas grid

These grants are intended to reduce the upfront costs associated with installing low-carbon heating systems, encouraging wider adoption.

Who can apply?

The scheme is open to homeowners and small business property owners in England and Wales. To qualify, applicants must:

• Own a property with a maximum installation capacity of up to 45 kilowatt-thermal (kWth), which includes most homes.
• Possess a valid Energy Performance Certificate (EPC) for the property.
• Ensure the EPC does not have outstanding recommendations for loft or cavity wall insulation, unless exemptions apply.

New build homes and social housing are generally ineligible, except for self-built properties.

New build homes and social housing will not be eligible for the Boiler Upgrade Scheme. The only exception is if you are building your own home.

How can I apply?

To apply for the grant:

1. Consult a certified installer: Engage with an MSC-certified installer who can assess your property’s eligibility and provide a quote, factoring in the grant to reduce upfront costs.
2. Installer application: Your chosen installer will apply for the grant on your behalf.
3. Consent confirmation: Ofgem, the scheme administrator, will contact you to confirm your consent for the grant application.

It’s advisable to obtain quotes from multiple installers to ensure competitive pricing and service quality.

Scheme duration

The Boiler Upgrade Scheme is set to run until March 2026, with budgets and allocations subject to periodic review. The recent funding increases aim to support a greater number of installations, contributing to the UK’s net-zero targets.

Choosing the right heating system

Choosing the appropriate low-carbon heating system depends on various factors, including your property’s characteristics and existing insulation levels. Improving your home’s insulation is crucial to maximize the efficiency of heat pumps or biomass boilers.

In Oxfordshire, Cosy Homes will create a bespoke Whole House Plan to help you determine the most suitable heating solutions and necessary energy efficiency improvements for your home.

How can I find out more?

For additional information on low-carbon heating systems, you can watch our webinar on air source and ground source heat pumps. To explore how Cosy Homes can assist you in enhancing your home’s energy efficiency, health, and comfort, register today with our Plan Builder.

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