Government increases heat pump grants by 50%

As part of the government’s net zero strategy, the Prime Minister has made some changes to the Boiler Upgrade Scheme, making it one of the most generous schemes in Europe.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a grant offering homes in the UK money towards the cost of replacing their fossil fuel boiler with an energy efficient system. This includes air-source heat pumps, ground-source heat pumps, water-source heat pumps, and biomass boilers.

The scheme launched in April 2022 to give more people access to efficient heating and support the government’s goal of reaching net zero by 2050. Initially, the scheme offered a total of £450 million funding, which would be made available until 2025.

How has the Boiler Upgrade Scheme changed?

As of 23 October 2023, homes can now get up to £7,500 to install a heat pump. Previously, the government was providing £5,000 for air-source heat pumps, and £6,000 for ground-source and water-source heat pumps. The funding for biomass boilers remains unchanged at £5,000.

This additional funding makes heat pumps cheaper to install for homeowners than gas boilers, as well as offering energy cost savings in the longer term. The scheme has also been extended by 3 years to 2028, giving people more time to take advantage of the funding.

Thinking about replacing your boiler with a heat pump?

We’ve increased the Boiler Upgrade Scheme grant to £7,500!

This means it could now be cheaper for you to install a new heat pump instead of a gas boiler🏡

Check out the benefits of heat pumps📽️👇https://t.co/4IptZCcxW2 pic.twitter.com/6IBTFuiwQh

— Department for Energy Security and Net Zero (@energygovuk) October 23, 2023

What is a heat pump?

A heat pump can heat or cool a space by moving existing heat from one place to another. By making use of existing heat, it is more energy efficient than other types of heating systems, generating 3-4 times as much energy as it uses. This efficiency has made heat pumps increasingly popular with homeowners, and a great solution for those looking to reduce their carbon footprint.

How do I know if I am eligible for the BUS?

To be eligible for the Boiler Upgrade Scheme, you must:

– Own the property you’re applying for

– Be replacing a fossil fuel heating system (such as oil, gas or electric)

– Be installing a system that meets certain standards, such as minimum efficiency levels

– Have installed (or plan to install) your new heating system on or after 1 April 2022

– Have a valid energy performance certificate (EPC) with no outstanding recommendations for cavity wall insulation

You’re still eligible if you’ve already received funding to make your property more energy efficient under a different scheme, such as improving insulation.

Visit GOV.UK to check your eligibility or view your EPC.

How do I apply for the Boiler Upgrade Scheme?

You don’t need to apply for the scheme yourself; the installer will do this on your behalf. You should use an MCS-certified installer and get a quote from several different companies before going ahead with the installation.

Once you confirm your eligibility and agree the quote with your chosen installer, they will contact Ofgem to apply for the grant. The value of the grant will be taken off the amount you pay for the installation. In some cases, the grant may cover the full cost, so you won’t have to pay anything.

If your installer has already applied for the grant but not yet fitted your new heat pump, you may be able to cancel and reapply for the increased amount, providing the original application was made before 23 October.

GOV.UK offers a guide to applying for the BUS, and you can find more information on Ofgem’s website.