The Boiler Upgrade Scheme (BUS) supports the decarbonisation of heat in buildings. It provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.
On Thursday 21 September 2023, the Department for Energy Security and Net Zero issued a change notice in accordance with BUS Regulation 13(4) to increase the BUS grant level for air source heat pumps and ground source heat pumps. Homeowners can claim the following through an approved installer (such as ourselves):
- £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, including water source heat pumps
- £5,000 off the cost and installation of a biomass boiler
£450 million of grant funding is available over three years from 2022 to 2025. In March 2023, the Department for Energy Security and Net Zero announced an extension to the BUS from 2025 until April 2028. On 18 December 2023, the government announced £1.5 billion additional funding for the BUS extension over three years.
- Air source heat pump: £7,500 towards cost and installation.
- Ground source heat pump: £7,500 towards cost and installation. This also includes water source heat pumps.
- Biomass boiler: £5,000 off cost and installation.
To apply, you’ll need to:
- Own your property (this can be a home or a small business property).
- Currently have a fossil fuel heawting system or an electric heating system without a heat pump.
- Have a valid Energy Performance Certificate (EPC).
- Have a property with a maximum installation capacity up to 45kWth (kilowatt-thermal). This covers most homes.
- Use a certified Microgeneration Certification Scheme (MCS) installer and a member of an approved consumer code, such as A Greener Alternative.
For biomass boilers, you’re only eligible if the property is:
- In a rural location and not connected to the gas grid.
- Not a self-build property.
No, new build properties aren’t eligible for the Boiler Upgrade Scheme. However, if a fossil fuel boiler was already in place when you moved into your property, you may be able to get a grant under the scheme. Talk to us about this to look over your options.
You can still apply for the Boiler Upgrade Scheme if you’ve had separate funding for energy efficiency upgrades. This includes insulation or energy efficient doors and windows.
However, properties that have already received government funding or support for a heat pump or biomass boiler aren’t eligible for the Boiler Upgrade Scheme. This includes the Green Homes Grant scheme.
Funding isn’t available for the replacement of existing low carbon heating systems. For example, you can’t replace an existing air source heat pump with a new ground source heat pump.
Only properties that are fully replacing existing fossil fuel systems (such as oil, gas or direct electric) will be eligible for support under the scheme.
We have more advice on installing low carbon heating systems. Remember, to be eligible for the scheme, the commissioning date of your new system must be on or after 1 April 2022.
In some circumstances, yes. If you own a self-build property, you may be eligible if:
- You or the original owner built it yourself, or paid a builder to do it.
- The property has never been owned by a business.
You’ll need to prove to the installer that your property is self-built. A copy of the title deeds should be enough for this.
The reduction in VAT (from 5% to 0%) on the install of energy saving materials has been in place since 1 April 2022. It will last for five years, covering the entire period of the scheme.