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Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) supports the decarbonisation of homes and small non-domestic buildings in England and Wales. The scheme provides upfront capital grants of up to £7,500 to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems including heat pumps and biomass boilers.

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  • Closing date: (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 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

From 23 October 2023, the grant levels for heat pumps were increased to £7,500. Funding is confirmed until 31 March 2028.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