UK Government Boiler Upgrade Scheme Explained
- Last updated date: April 17, 2024
The UK government introduced Boiler Upgrade Scheme (BUS) to tackle fuel poverty, rising energy and heating costs, and climate change. The scheme is administered through Ofgem and has £1.5 billion of funding for eligible applicants. The great news is you could be eligible for an BUS grant today, just use our free grant checker to see if you qualify.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme (BUS) is a government grant scheme for ground and air source heat pump and biomass boilers. It is administered by Ofgem and provides funding for homeowners and businesses to install heating measures in their homes at a discounted price. In some limited circumstances, the grant scheme could also provide funding to install biomass boilers, but only when replacing fossil fuel heating. The boiler upgrade scheme aims to incentivise people to switch to cleaner heating and help the UK reach its 2050 net zero target. The total funding pool is £1 billion and the scheme is due to run until 31 March 2028.
Although it was first launched in April 2022, the boiler upgrade scheme increased individual grant amounts from Monday 23 October 2023. So, if you are thinking about ditching your gas-guzzling boiler, or you’d like to escape the high cost of energy prices, these grants could be for you. Check your boiler upgrade scheme eligibility today using our free grant checker.
How much funding can I access via the ECO4 Scheme?
From Monday 23 October 2023, installers have been able to apply for the newly increased grant amounts, the grants available are based on heating measures as shown in the table below:
Heating Measure | Grant Amount |
Air Source Heat Pump | £7,500 |
Ground Source Heat Pump | £7,500 |
Biomass Boiler | £5,000 |
Who is eligible for a Boiler Upgrade Scheme grant?
Boiler upgrade scheme grants are available in England and Wales, and homeowners and businesses can apply for these grants. One of the big differences to other UK government energy efficiency schemes (such as the ECO4 scheme) is that the applicant doesn’t need to be claiming benefits or to meet income rules. However, the property will need to be suitable for a heat pump or biomass boiler installation, so it is worth considering the benefits of these heating solutions to determine whether they are suitable for your home or business.
What properties are eligible for a Boiler Upgrade Scheme grant?
The Boiler Upgrade Scheme is available for properties in England and Wales. There is a requirement for basic energy-efficiency measures to be fitted before a heat pump or biomass boiler installation. This means that if you have cavity walls they must be filled, and you need a minimum depth of insulation in your loft. To evidence this, you will need to have an up-to-date Energy Performance Certificate (“EPC”) which does not show these measures as being required.
The quickest way to check your eligibility and connect with an installer is to use our free grant checker.
What is the process for applying for a Boiler Upgrade Scheme grant?
The entire Boiler Upgrade Scheme grant process is led by Microgeneration Certified Scheme (MCS) accredited installers, so you need to find a trustworthy and reliable installer of new boilers in your area. They will then apply for and administer the new boiler grant on your behalf.
If you can’t find an accredited installer in your area, Energy Saving Genie can help as we have access to a network of installers, and we only use the best rated MCS accredited installation companies.
The process for applying for a Boiler Upgrade Scheme grant is as follows:
- Apply using our free grant checker and provide information about your address and property.
- Your application will be allocated to an accredited MCS installer in your area.
- The installer will assess your Boiler Upgrade scheme grant application and produce an outline quotation for the installation.
- Once you accept the quotation, the installer will apply to Ofgem for your Boiler Upgrade Scheme grant voucher.
- The installer will arrange your new boiler installation for a time and date of your choosing (you will need to pay the installer any contributions before the installation takes place).
- Once the project is finished, the installer will redeem their voucher, and they are paid the grant directly by Ofgem.
What Grants are Available under The Boiler Upgrade Scheme?
There are a range of heating measures available to keep heat in and make your home more energy efficient. Heating measures being offered as part of the Boiler Upgrade Scheme include:
- Air source heat pump
- Ground source heat pump
- Biomass Boiler
Do I need to pay money towards my Boiler Upgrade Scheme grant installation?
The BUS grant scheme is very generous (£1.5 billion in total) and if you are eligible you may have to pay some money towards the installation costs. Check your eligibility now for the BUS grant scheme using our free grant checker.
Frequently Asked Questions
What is a Boiler Upgrade Scheme grant?
A boiler upgrade scheme grant provides funding for homeowners and business towards the installation of energy efficient renewable heating measures (air source heat pumps, ground source heat pumps and biomass boilers). The funding amounts are £7,500 for air and ground source heat pumps, and £5,000 for biomass boilers.
What are the eligibility criteria for a Boiler Upgrade Scheme grant?
There are no specific eligibility criteria for a boiler upgrade scheme grant. As long as you live in England and Wales and can afford any contributions above the grant amount, you can access funding through the Boiler Upgrade Scheme.
How long will i have to wait for my Boiler Upgrade Scheme grant?
Timeframes can vary, however using our free grant checker is the quickest way to get your application assessed and allocated to an installer. As a rough guide, heat pumps (air source and ground source) and biomass boiler installations usually take 4 weeks for the entire process (application to installation).
How much do heat pumps cost?
The Energy Saving Trust quote typical costs for installing heat source pumps in the UK as £7,000 to £13,000. The range is quite broad because heat pumps can be installed in a range of ways, and the size of your home and type of home will impact costs. Installation costs will also depend on the model, brand and size of the heat pump installed.
How much do Biomass Boilers cost?
For biomass boilers, the Energy Saving Trust indicates that an automatically fed pellet boiler for an average home costs around £16,000, including installation. There are cheaper manual fed boiler options that use logs instead of pellets.
