New Boiler Upgrade Scheme

funding to replace boilers with heat pumps – £5K grants available from April 22

Have you been thinking about taking the plunge and upgrading your boiler to a heat pump? Maybe you have heard about the Government’s plans to phase out gas boilers?

Whatever your circumstances, if you are looking to replace your boiler with something more energy-efficient a heat pump grant from the new Boiler Upgrade Scheme could make the switch much easier on your wallet.

This Government grant scheme will help you to get ahead of the curve and upgrade your boiler before gas boilers are banned completely.

It offer grants for property owners who install heat pumps (and in some cases biomass boilers). It started in April 2022 and these grants provide you with £5,000 for installing an Air Source Heat Pump or £6,000 for installing a Ground Source Heat Pump. Owners with solid fuel heating can also get a grant towards a biomass boiler.

What is the Boiler Upgrade Scheme (BUS)?

The Boiler Upgrade Scheme (BUS) is a Government grant scheme for heat pumps. It provides funding for homeowners to install home heat pumps in their homes at a discounted price. In some limited circumstances, the grant scheme could also provide funding to install biomass boilers but only when replacing fossil fuel heating.

This Government grant scheme  opened for applications in April 2022 and it aims to incentivise people to switch to cleaner heating and help the UK to reach its carbon reduction targets.

These grants could help you to install Air Source Heat Pumps or Ground Source Heat Pumps at a fraction of the price. So, if you are thinking about ditching your gas-guzzling boiler or if you’d like to escape the looming gas price hikes these grants could be for you.

Who is eligible for Boiler Upgrade Scheme grants?

Boiler Upgrade Scheme grants are available in England and Wales and homeowners and businesses can apply for these grants. An alternate scheme is yet to be announced for Scotland.

Homeowners and businesses can get these grants towards the installation of heat pumps and unlike other energy-efficiency grant schemes such as the Energy Company Obligation, there are no requirements to claim benefits or meet income rules.

However, the property will need to be suitable for a heat pump and it is worth considering the benefits of heat pumps to determine whether they are suitable for your home or business.

What grants can you get in the Boiler Upgrade Scheme?

The scheme provides funding for the installation of heat pumps.

  • Air Source Heat Pump Grants are worth £5,000
  • Ground Source Heat Pump Grants worth are £6,000

The heat pump has to be installed by an MCS approved installer. The heat pump installed will need to have a capacity of 45kW or less to be eligible for the scheme.

What properties are eligible for the Boiler Upgrade Scheme?

Your property will need to be located in England or Wales as Scotland isn’t included in this scheme. As with previous grant schemes, such as the Green Homes Grant scheme and Energy Company Obligation, there will be a requirement for basic energy-efficiency measures to be fitted before the heat pump installation. This means that if you have cavity walls they must be filled, and you need a minimum depth of insulation in your loft. To evidence this, you will need to have an up-to-date Energy Performance Certificate (“EPC”) which does not show these measures as being required.

Can I have a Hybrid system or a ‘heating only’ heat pump?

To be eligible for the Boiler Upgrade Scheme Grant, the heat pump must provide both heating and hot water to the property. This means that heat pumps for home heating only aren’t eligible unless they provide hot water too.

The following circumstances will NOT qualify for a grant:

Hybrid heating systems where a heat pump works in conjunction with a backup boiler

 Heating heat pumps that only provide heating and not the hot water

 Heat pump installations where the pump only covers part of the ‘load’ detailed on the Energy Performance Certificate (EPC)

How Do I Get a Boiler Upgrade Scheme grant?

The entire Boiler Upgrade Scheme grant process is led by MCS accredited installers.

The process for getting a grant is as follows:

  1. Complete a short application form and provide some information about your property.
  2. We will assess the application and produce an outline quotation for the installation.
  3. Once you accept the quotation, the we will apply to Ofgem for your Boiler Upgrade Scheme grant voucher.
  4. we will arrange installation at a time and day of your choosing (you will need to pay us any contributions before the installation takes place).

Once the project is finished, we will redeem the voucher and will be paid the grant directly by Ofgem.