Boiler Upgrade Scheme

The UK Government recently announced several improvements for people getting a heat pump as part of its Warm Homes Plan. These include: 

• Adding £30 million to Boiler Upgrade Scheme funding until March 2025. 
• Increasing BUS funding to £295 million for 2025/26. 
• Removing planning barriers for households in England to install an air source heat pump. This includes removing the rule that said heat pumps had to be installed more than one metre away from a property’s boundary. 

The Boiler Upgrade Scheme covers three low carbon heating systems, with different amounts of funding available. If you’re eligible, you can get one grant per property for either: 

• An air source heat pump: £7,500 towards cost and installation. 
• A ground source heat pump: £7,500 towards cost and installation. This also includes water source heat pumps. 
• A biomass boiler: £5,000 off cost and installation. 

Your installer will deduct the grant amount upfront from any quotes you get. 

You can still apply for the Boiler Upgrade Scheme if you’ve had separate funding for energy efficient home improvements such as the: 

• Energy Company Obligation (ECO) 
• Great British Insulation Scheme (GBIS) 

However, properties that have already had government funding or support for a heat pump or biomass boiler aren’t eligible for the Boiler Upgrade Scheme. This includes the closed Green Homes Grant scheme. 

The BUS is open to homeowners and owners of small business properties in England and Wales only. 

To be eligible, you’ll need to:   

• Own your property (this can be a home or a small business property). 
• Currently have a fossil fuel heating system (such as a gas boiler) or an electric heating system without a heat pump. 
• Have a valid Energy Performance Certificate (EPC) issued within the last ten years. 
• Have a property with a maximum installation capacity up to 45kWth (kilowatt-thermal), which covers most homes. Kilowatt-thermal is a unit that measures the potential heat output of a heating system. The installer will be able to work this out when assessing your property. 
• Ensure your installer is certified by the Microgeneration Certification Scheme (MCS). They also need to be a member of an approved consumer code such as the Renewable Energy Consumer Code (RECC) or HIES Consumer Code. 

For biomass boilers, you’re only eligible if the property is: 

• In a rural location and not connected to the gas grid. 
• Not a self-build property. 

In some circumstances, you may be eligible with a self-build property if: 

• You or the original owner built it yourself or paid a builder to do it. 
• The property has never been owned by a business. 
• You can prove to the installer that your property is self-built. A copy of the title deeds should be enough for this. 

New build properties aren’t normally eligible for the Boiler Upgrade Scheme. However, if a fossil fuel boiler was already in place when you moved into your property, you may be able to get a grant under the scheme. Talk to your installer about this to discuss your options. 

No, the Boiler Upgrade Scheme isn’t available in Scotland or Northern Ireland. However, if you live in Scotland or Northern Ireland, there may be alternative funding available. 

Scotland 

The Home Energy Scotland Grant and Loan currently offers loans for heat pumps and biomass boilers: 

• Up to £15,000 (£7,500 grant plus up to £7,500 loan) for air source and ground source heat pumps. Qualifying rural properties can get an extra £1,500 grant.
• Up to £15,000 (£7,500 grant plus up to £7,500 loan) for biomass boilers.  

Northern Ireland 

If you live in Northern Ireland, contact NI Energy Advice to find out more about funding available to help improve the energy efficiency of your home. 

Your installer can advise whether a heat pump or biomass boiler is most suitable for your property. Although you’re not required to have home insulation to qualify for the BUS, the installer may recommend improving the energy efficiency of your property before fitting the heating system.

Read our advice on loft insulation and cavity wall insulation to help improve your property’s energy efficiency.

1. Find an MCS certified installer in your area who can carry out the work. We recommend you get quotes from at least three different installers to make sure you’re getting good value. 
2. The installer will tell you if you’re eligible for a BUS grant.  
3. Agree a quote with your installer. The installer will deduct the value of the grant upfront as part of the quote. 
4. The installer will apply for the grant and carry out the work. 

For more information on the process, see our step-by-step guide to getting a heat pump. 

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