By Christabel - posted on May 19, 2022

Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is a government scheme to provide grants for property owners to help them install low carbon heating. We have shared the options and considerations for low carbon heating here.

This scheme opens for grant applications and payments on 23rd May 2022, although low carbon systems commissioned on or after 1st April 2022 are eligible for funding. The scheme is due to run from 2022 to 2025.

What grants are available?

Grants are available towards the upfront cost of installing air source heat pumps, ground source heat pumps and biomass boilers (biomass is only covered if the property is in a rural area and not connected to the gas network), but are unlikely to cover the full cost.

  • £5,000 off the cost and installation of an air source heat pump
  • £5,000 off the cost and installation of a biomass boiler
  • £6,000 off the cost and installation of a ground source or water source heat pump

Find out more about heat pumps from Centre for Alternative Technology here.

Who is eligible?

The scheme is only open to those who live in England or Wales, and who own their property. Most new build properties are not eligible, unless you are building your own home when you might be able to get a heat pump.

Properties could be a domestic or small non-domestic property. You must be fully replacing an existing fossil fuel heating system (oil, gas, electric) and cannot replace an existing low carbon heating system or install a hybrid system.

Properties must have an installation capacity of up to 45kWth and a valid, in date Energy Performance Certificate (EPC) which shows that loft and cavity wall insulation have been installed where needed (unless you have an exemption). You can still apply if you have had other grants for energy efficiency improvements like insulation, but not if you’ve had government funding for low carbon heating.

How to apply?

The low carbon heating work must be completed by an accredited Microgeneration Certification Scheme (MCS) installer, so the first step is to find an MCS accredited installer in your area taking part in the Boiler Upgrade Scheme to quote for the work. It’s recommended to get more than one quote to ensure you are getting value for money.

The installer will advise you about whether a low carbon heating system is suitable for your property and whether the installation is eligible for a grant.

Once you have your quotes you can pick the installer and agree a quote for the installation.

The installer will apply for the grant on your behalf and discount it from the price you pay. You will need to confirm that the installer is acting on your behalf when contacted by Ofgem.

If you have any problems with your new system, speak to the installer first, and if you have any problems with the installer you can speak to MCS.

Are you an installer interested in taking part in this scheme?

Find out more about the scheme from Ofgem and from MCS and you can sign up and set up an account here.