Incentives

What is the Boiler Upgrade Scheme (BUS)?

Homeowners have been able to get £5,000 off the cost of a new air source heat pump since the launch of the grant in April 2022 – and £6,000 off the price of a ground source heat pump – thanks to the government’s new Boiler Upgrade Scheme.
However, because the scheme is receiving a relatively small £450m, a maximum of just 90,000 homes will be able to take advantage of the grant over the next three years.
That’s despite the Climate Change Committee (CCC) saying the UK needs to install 3.3 million heat pumps in existing homes by 2030 to reach net-zero.

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You can get a £5,000 or £6,000 heat pump grant from April 2022

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The average home will be able to save £2,827 over 20 years

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But only 90,000 homes will benefit

How will the scheme work?

The Boiler Upgrade Scheme will operate on a ‘first-come, first-served basis’, with customers having to rush to register their interest with air or ground source heat pump installers.

Installers will then apply for the £5,000 or £6,000 grant on behalf of customers and remove that amount from the total cost of the installation.

This makes the grant simpler for homeowners than the now-defunct Green Homes Grant, which required you to apply for energy-saving improvements yourself.

Are you eligible for the Boiler Upgrade Scheme?

You can consider yourself eligible for the Boiler Upgrade Scheme if you meet a few simple requirements:
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You must be a homeowner or small business owner

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Your property must be in England or Wales

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The building must have been issued an energy performance certificate (EPC) in the past 10 years

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You must follow one of the three EPC scenarios listed below

There are three valid paths to making sure your EPC is eligible:
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Your EPC contains no recommendations for loft or cavity wall insulation

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It contains one of these insulation recommendations, but you insulate your home between applying for the Boiler Upgrade Scheme and getting a heat pump installed

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Your property has an EPC or insulation exemption – for example, this may be the case if you own a listed building

If your property is a custom-built home, it won’t need an EPC to qualify, as you will have had to follow the latest eco-friendly building regulations.
If you meet all these requirements, an installer can apply to get a discount on an air or ground source heat pump for you.

Does this make heat pumps affordable?

Yes. For 90,000 lucky homes, the Boiler Upgrade Scheme will reduce the average cost of an air source heat pump from £10,000 to £12,000. Common to misconception, the average cost of an air source heat pump is between £15,000 to £17,000 and not £10,000 to £12,000 as displayed in the news and online. The heat pump itself could be supplied and fitted for much less than £12,000 but, this would not include the required radiator changes and upsizing of pipework to allow the heat pump to work at maximum capacity.

This means that moving from a gas boiler to a heat pump will save you an average of £2,827 over its 20-year lifetime, according to calculations and potential savings in excess of £10,000 for homeowners using any other source to heat their home.

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