What is the Boiler Upgrade Scheme?

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The Boiler Upgrade Scheme (BUS) will launch in spring 2022 to aid the decarbonisation of buildings. It will provide upfront capital grants to support the installation of heat pumps, and in some circumstances biomass boilers, in homes and some non-domestic buildings

The Boiler Upgrade Scheme will run from April 2022 until April 2025. It will replace the Domestic Renewable Heat Incentive (RHI), which will close to new applicants on 31 March 2022.

 

How much can you get?

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Homeowners can apply to receive government grants of £5,000 for the purchase of air source heat pumps (ASHP) and biomass boilers, and grants of £6,000 for ground source heat pumps (GSHP).

The government says that a “proportionately higher grant level in relation to overall cost has been set for ASHPs given that the majority of existing properties are suitable for this technology”

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How long will it run?

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The Boiler Upgrade Scheme will run from April 2022 until April 2025. It will replace the Domestic Renewable Heat Incentive (RHI), which will close to new applicants on 31 March 2022.

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HOW WILL THE SCHEME WORK?

The scheme will operate similarly to the Green Homes Grant, whereby the government will contribute a fixed sum towards the cost of a renewable heating system, and the homeowner will have to pay the rest.

In its consultation response to the scheme, the government has proposed a first come, first served basis to those who meet the eligibility criteria.

HOW LONG WILL VOUCHERS LAST?

Applicants will have a set validity period to ensure the vouchers are utilised in a timely manner and that unused vouchers can be recycled. 

The validity period will be three months for ASHP and biomass boiler vouchers, and six months for GSHP vouchers.

 

HOW TO APPLY

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While we don't yet know the precise details on how applying for grants will work, the government has proposed two stages of application:

• Applying for the voucher — this will be led by the homeowner, and would take place before installation of a heating system

• Redeeming the voucher — this will be led by the installer, which will confirm proof of the installation and process the completed paperwork

The government says it will "work closely with the scheme administrator on the detailed design of the administration and digital solution to ensure it works for all users".

 

WHICH HEATING SYSTEMS ARE ELIGIBLE?

The following types of heat pumps will be supported:

• Ground source heat pumps

• Water source heat pumps (which the government considers in the same tech category as GSHPs)

• Air source heat pumps

Biomass boilers will be supported, but only in rural areas with populations of 10,000 people or less. They won’t be offered to people in urban areas. 

Systems with a total capacity of up to 45kW will be eligible for the scheme.

 

Homeowners will need a valid Energy Performance Certificate (EPC) to apply to the Boiler Upgrade Scheme (Image credit: Tim Pullen)

 

WHO WILL BE ELIGIBLE?

All homeowners, small landlords and private landlords will be eligibly to apply for grant.

However, all applicants must have a valid Energy Performance Certificate (EPC) - typically one which has been issued in the last 10 years - with no outstanding recommendations for loft or cavity wall insulation.

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Applications may still be made by homeowners with outstanding recommendations for loft or cavity wall insulation, providing it is evidenced through a newly generated EPC at the voucher redemption stage that the installation of these types of insulation has been carried out during the voucher validity period. 

(MORE: Learn How to Insulate a Loft With This Guide)

 

WHO WON’T BE ELIGIBLE?

Anyone living in new build and social housing will not be eligible for support under the scheme.

 

WHAT ABOUT SELF BUILDERS?

Custom and self build homes will be eligible for the Boiler Upgrade Scheme, the government has confirmed.

Self builders will be given a three-month validity period to complete their installations, and will not have to provide an EPC to evidence insulation eligibility. 

 

WHICH SYSTEMS WON'T BE COVERED?

Support will be available to installations providing space and water heating in buildings, but the grant will exclude:

• Hydrogen boilers (which aren't expected to be available by the time the scheme ends)

• Hybrid heat pumps

Solar thermal will not be directly supported. However, solar thermal systems can be installed as part of a heat pump or biomass system that is funded on the scheme, providing the heating system can meet the full space and water heating requirements of the home.