There is currently one key government backed incentive scheme available to the owners of domestic properties.
The Boiler Upgrade Scheme (BUS) replaces the old Domestic Renewable Heat Incentive Scheme (RHI), and is aimed at reducing carbon emissions generated from heat production in properties in England & Wales.
It offers home owners a very significant one-off contribution towards the cost of replacing old fossil-based heating systems with new, energy efficient technology.
The Boiler Upgrade Scheme (BUS) scheme provides up-front capital grants to support the installation of heat pumps and biomass boilers in homes and small non-domestic buildings in England and Wales, but as the name suggests, the grants are only available where the new system is replacing an existing fossil fuel system.
The government has allocated millions to the Boiler Upgrade Scheme with a cap of £150 million per year, which will see around 90,000 households benefit over three years. The scheme is open to domestic and small non-domestic properties and was launched in 2022, and extended in 2025 until 2028. Though please note, that the budget and grant levels are only confirmed until March 2026.
With the heightened concerns about rising energy prices and the importance of tackling climate change and carbon emissions, there’s little doubt that heat pumps are becoming a far more attractive source of heating as opposed to fossil fuel boilers. It is just one of the ways in which the Government are hoping to meet the net zero emissions target by 2050.
Currently, the Boiler Upgrade Scheme (BUS) provides up-front capital grants in the form of:
The scheme is exclusively for property owners who fully replace an existing fossil fuel system (such as oil, gas or direct electric).
The scheme is also installer-led. This means that AES, as an MCS accredited organisation, will apply for the voucher on your behalf. You will pay the full cost of the system up front, with the voucher redeemable once the installation has been completed and MCS certified. You read more about this below in the application process overview section.
The scheme has a set of clear eligibility criteria, along with relevant exclusions, and these are detailed in the following panel.
From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy saving materials including heat pumps and biomass boilers.
The key requirements for the grant are that:
Also you will need to ensure:
Ineligible Properties:
*Co-efficient of performance
We will work with you to check your eligibility for the Boiler Upgrade Scheme, and then design an heat pump solution, that will supply your property with both heat and hot water, which achieves the minimum COP (co-efficient of performance) of 2.8.
Once this is complete, we will be able to proceed with the voucher application process which is as follows.
Ofgem assesses the application and seeks confirmation of property owner’s consent.
3 month validity for ASHPs and Biomass boilers
6 month validity for GSHPs
This is done following the commissioning of the plant and within the voucher validity period.
£7,500 for ASHPs and GSHPs
£5,000 for Biomass boilers
For existing homes, you’ll need a valid EPC. If your project is a retrofit, there needs to be a valid EPC on the property there is now no requirement for cavity wall insulation although we would always recommend a fabric first approach. Well-insulated properties will furtherl benefit from a low-temperature heat source such as an Air Source Heat Pump.
You can check your EPC at: https://www.gov.uk/find-energy-certificate
If you EPC has expired you can apply for a new one at: https://www.gov.uk/get-new-energy-certificate
Whilst you won’t need an EPC if you’re installing a heat pump in a new build (known as a self-build within the scheme), you will need to provide the planning application reference instead.
Contact us today and we can discuss your BUS options and eligibility for the £7500 grant