Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is designed to help reduce carbon emissions from homes and small to medium-sized non-domestic buildings in England and Wales. It offers upfront grants of up to £7,500 to support property owners in switching from traditional fossil fuel heating systems to more energy-efficient, low-carbon alternatives, such as heat pumps and biomass boilers.

Start date: 23 May 2022, 12:01 AM (midnight)
End date: 31 December 2027, 11:59 PM (midnight)

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Summary

The Boiler Upgrade Scheme provides grants to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems including air source heat pumps, ground source heat pumps and, in limited circumstances, biomass boilers. You can get:

£7,500 off the cost and installation of an air source heat pump
£7,500 off the cost and installation of a ground source heat pump
£5,000 off the cost and installation of a biomass boiler

These grants help property owners overcome the upfront cost of installing a low carbon heating system.

Eligibility

your property must be a home or small or medium non-domestic building in England or Wales. The maximum installation capacity of 45 kWth covers the vast majority of these properties. The overall system capacity for any shared ground loop system must not exceed 300 kWth.
your property must have a valid energy performance certificate.
where a low carbon heating system has been commissioned prior to an installer submitting a voucher application, installers must ensure that the voucher application has been or will be, properly made within 120 days of the commissioning date stated on the MCS certificate.
biomass boilers are only eligible in properties that are both in a rural location and not connected to the gas grid. Heat pumps do not have either of these restrictions.
you must be fully replacing an existing fossil fuel system such as an oil or gas boiler, or an electric heating system such as storage or panel heaters. Funding will not be available for the replacement of existing low carbon heat systems.
the installation cannot be funded by more than one source of public funds and you cannot apply if you have already been given government funding or support for a heat pump or biomass boiler.
you can still apply if you’ve received separate funding for energy efficiency upgrades such as insulation, doors or windows.
new-build homes and social housing are not eligible for the Boiler Upgrade Scheme, although self-build properties are eligible.

Objectives

The aim of this scheme is to incentivise and increase the deployment of low carbon heating. This scheme is part of a wider package of policies we are introducing to scale up heat pump deployment and support industry to reduce the costs of heat pumps.

Dates

An application will not be eligible if made for a system which has been commissioned more than 120 days ahead of the application.

How to apply

The application is installer-led, with the installer applying for the grant on the property owner’s behalf. Your chosen installer will need to be certified by the Microgeneration Certification Scheme (MCS), a nationally recognised standards organisation that gives you assurance of the quality of your product and competence of your installer. It also ensures that your installer complies with high consumer protection standards.Your chosen installer will:

discount the value of the grant from your invoice.
apply to Ofgem, the scheme administrator, for a grant voucher.
provide your details to Ofgem, who will then email you asking for you to consent to the installer applying on your behalf.
liaise with Ofgem on most matters related to the scheme.
complete the installation in line with industry standards and scheme requirements.
redeem the voucher and receive the grant following installation and commissioning.

Supporting information

You can find an MCS certified installer in your area here:

www.mcscertified.com/find-an-installer/

https://www.ofgem.gov.uk/publications/boiler-upgrade-scheme-guidance-property-owners

Summary

The Boiler Upgrade Scheme offers financial support to help homeowners and property owners switch from traditional fossil fuel heating systems to more energy-efficient, low-carbon alternatives. These include air source heat pumps, ground source heat pumps and in certain cases, biomass boilers. Through this scheme, you may be eligible to receive:

Up to £7,500 towards the purchase and installation of an air source heat pump
Up to £7,500 towards the cost and installation of a ground source heat pump
Up to £5,000 towards the supply and installation of a biomass boiler

These grants are designed to reduce the upfront cost of installing a low-carbon heating system.

Eligibility

Your property must be a residential home or a small to medium-sized non-domestic building located in England or Wales. Most eligible properties fall within the 45 kWth installation capacity limit, while shared ground loop systems must not exceed a total capacity of 300 kWth.
A valid Energy Performance Certificate (EPC) is required for the property.
If a low-carbon heating system has already been installed, the installer must submit (or plan to submit) the voucher application within 120 days of the commissioning date shown on the MCS certificate.
Biomass boilers are only eligible for properties in rural areas that are not connected to the gas grid. These restrictions do not apply to heat pumps.
The system must replace an existing fossil fuel heating system (such as gas or oil) or electric heating (like storage or panel heaters). Replacing an existing low-carbon system is not eligible for funding.
The installation cannot receive funding from multiple public sources. You are not eligible if you have already received government support for a heat pump or biomass boiler.
You can still apply if you have received separate funding for energy efficiency improvements, such as insulation, doors, or windows.
The scheme is not available for new-build homes or social housing, but self-build properties do qualify.

Objectives

The purpose of this scheme is to encourage the adoption and wider use of low-carbon heating systems. It forms part of a broader set of initiatives aimed at increasing heat pump uptake and helping the industry bring down installation costs.

Dates

Applications will not be accepted if the system was commissioned more than 120 days before the application is submitted.

How to apply

The application process is installer-led, meaning your installer will apply for the grant on your behalf. Your selected installer must be certified by the Microgeneration Certification Scheme (MCS), a recognised national body that ensures both the quality of the system and the installer’s competence. This certification also guarantees that high consumer protection standards are met.

Deduct the grant amount directly from your final invoice.
Submit an application to Ofgem for the grant voucher.
Share your details with Ofgem, who will contact you to confirm your consent.
Handle most communication with Ofgem regarding the scheme.
Carry out the installation in accordance with industry standards and scheme guidelines.
Redeem the voucher and receive the grant once the system has been installed and commissioned.