Boiler Upgrade Scheme now open

The £450 million Boiler Upgrade Scheme (previously known as the Clean Heat Grant) is part of more than £3.9 billion of new funding being announced by the government for decarbonising heat and buildings. This will fund the next 3 years of investment through the Social Housing Decarbonisation Fund, the Home Upgrade Grant scheme, the Boiler Upgrade Scheme and the Heat Networks Transformation Programme and reducing carbon emissions from public buildings through the Public Sector Decarbonisation Scheme.

BUS launched in April 2022 and has been established for homeowners in England and Wales to help people afford the upfront costs required for low-carbon heating. Although the scheme has now launched, applications for homeowners will open on 23 May 2022.

How does the scheme work?

Homeowners who wish to install air source heat pumps, ground source pumps or biomass boilers to replace their heating can apply to get funding towards the work.

Installer, who are registered with the scheme can apply for the funding on behalf of homeowners. Successful applicants will receive one-off payments of up to £6,000 towards the cost of the installation project. The funding will be sent as a voucher, given to installer on behalf of homeowners utilising the initiative. Each voucher has a period of validity to ensure they are used within a given time frame; three months for air-source heat pumps or biomass boilers and six months for ground source heat pumps.

Grants are available to owners of existing homes in England and Wales, including private landlords. There are caveats to the scheme; funding can only be used for replacing fossil fuel heating systems, such as gas, oil, or direct electric heating. Grants cannot be used for replacing existing low carbon systems. A valid Energy Performance Certificate is also required.

Installers will need a verified installer account in order to make BUS applications when the scheme launches in May.

Eligible Technology

People who wish to install air-source heat pumps, ground-source heat pumps or biomass boilers are eligible under different circumstances to receive grants through the initiative.

Air source heat pumps – up to £5,000 funding
Ground source heat pumps – up to £6,000 funding
Biomass boilers – up to £5,000 funding

Biomass boilers will only be supported by the BUS in rural areas where there is no connection to the gas grid or when they replace existing fossil fuel systems that are not fuelled by mains gas or direct electric systems.

Key Dates

1 April 2022 – Low carbon heating systems that are commissioned on or after this date will be entitled to support under the scheme, if they meet all eligibility requirements
11 April 2022 – Installers can create a BUS installer account with us. Read our BUS installer guidance on how to create an account
23 May 2022 – BUS opens for grant applications

Administration

The Boiler Upgrade Scheme is being administered by Ofgem on behalf of the government’s Department for Business, Energy and Industrial Strategy (BEIS).

HETAS operates a Microgeneration Certification Scheme for installers of biomass systems or boilers. To find out more, contact the team on 01684 278170 or email [email protected].

For details about MCS product approval through HETAS, contact [email protected].