Boiler Upgrade Scheme and certification requirements consultation - Revision history

Designing Buildings at 16:20, 22 May 2025

2025-05-22T16:20:48Z

← Older revision		Revision as of 16:20, 22 May 2025
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−	[[File:~~Gov UK Boiler upgrade consultation 25 1000~~.jpg\|link=https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage]]	+	[[File:Gov_UK_Boiler_upgrade_consultation_25_1000.jpg\|link=https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage]]

	= Introduction =		= Introduction =

−	The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022, it supports low-carbon heating with over £328 million in grants for 49,000+ installations. After a slow start with only one third of the low-carbon heating scheme’s annual budget having been used on February of 2023, the scheme has seen a gradual year on year increase. By the end of September 2024 applications reached 55,095, 12% higher than in August, by the end of January 2025, a total of 58,883 vouchers had been issued, an increase in applications, with a total of 3,661 applications across all technology types, a 29% increase compared to December 2024 and a 79% increase compared to January 2024~~. See also Boiler Upgrade Scheme, and Boiler Upgrade Scheme grant levels changed~~.	+	The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022, it supports low-carbon heating with over £328 million in grants for 49,000+ installations. After a slow start with only one third of the low-carbon heating scheme’s annual budget having been used by February 2023, the scheme has seen a gradual year on year increase. By the end of September 2024 applications reached 55,095, 12% higher than in August, by the end of January 2025, a total of 58,883 vouchers had been issued, an increase in applications, with a total of 3,661 applications across all technology types, a 29% increase compared to December 2024 and a 79% increase compared to January 2024.

	= Part 1: Boiler Upgrade Scheme (BUS) consultation =		= Part 1: Boiler Upgrade Scheme (BUS) consultation =
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	This article is a summary based based on the information given in '[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage Open consultation: Boiler Upgrade Scheme and certification requirements consultation (accessible webpage)]' Published 30 April 2025, for full details visit the original site.		This article is a summary based based on the information given in '[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage Open consultation: Boiler Upgrade Scheme and certification requirements consultation (accessible webpage)]' Published 30 April 2025, for full details visit the original site.

−	== Related articles on Designing Buildings ==	+	= Related articles on Designing Buildings =

	* Accredited energy assessor.		* Accredited energy assessor.

Editor at 08:34, 21 May 2025

2025-05-21T08:34:19Z

← Older revision		Revision as of 08:34, 21 May 2025
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		+	[[File:Gov UK Boiler upgrade consultation 25 1000.jpg\|link=https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage]]
		+
	= Introduction =		= Introduction =

Editor at 08:28, 21 May 2025

2025-05-21T08:28:16Z

← Older revision		Revision as of 08:28, 21 May 2025
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	Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas boiler		Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas boiler

−	== Enhancing consumer protections under the BUS ==	+	= Enhancing consumer protections under the BUS =
		+
		+	== Implications of Microgeneration Certification Scheme (MCS) reforms on the BUS ==
		+
		+	In June 2023, MCS proposed reforms to strengthen quality and consumer protection, including replacing CTSI-approved consumer code membership with a new MCS "Customer Commitment." This aims to offer a single complaints and dispute resolution route. Government may approve this new standard for BUS consumer protection once fully implemented and assessed.

	== Grant Payments under the BUS ==		== Grant Payments under the BUS ==
		+
		+	The BUS incentivises heat pump uptake by covering upfront costs, with grants intended to be discounted from the total price at the point of sale. However, 21% of installers request full payment, reimbursing grants later, posing financial risks. Government is considering mandating upfront discounts and addressing installer cash flow issues in complex projects.

	= Part 2: Certification requirements for clean heat schemes consultation =		= Part 2: Certification requirements for clean heat schemes consultation =

	== Proposals to require the Microgeneration Certification Scheme (MCS) as the sole certification scheme for UK government clean heat schemes. ==		== Proposals to require the Microgeneration Certification Scheme (MCS) as the sole certification scheme for UK government clean heat schemes. ==
		+
		+	The Government proposes mandating MCS as the sole certification scheme for clean heat initiatives like the Boiler Upgrade Scheme, to ensure consistent quality, safety, and consumer protection. This move would remove recognition of ‘equivalent’ schemes across several programmes, aiming to reduce complexity, strengthen standards, and enhance redress mechanisms ahead of broader reforms.
		+
		+	= Next Steps Summary =
		+
		+	The Government will review consultation feedback and publish a response. This forms part of the broader Warm Homes Plan, backed by £3.4 billion, to improve insulation and expand low-carbon heating. DESNZ and Ofgem will continue refining the BUS scheme and digital platform, ensuring effective implementation and stakeholder engagement.
		+
		+	-----
		+	This article is a summary based based on the information given in '[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes/boiler-upgrade-scheme-and-certification-requirements-consultation-accessible-webpage Open consultation: Boiler Upgrade Scheme and certification requirements consultation (accessible webpage)]' Published 30 April 2025, for full details visit the original site.

	== Related articles on Designing Buildings ==		== Related articles on Designing Buildings ==
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	* Warm Homes Skills Programme.		* Warm Homes Skills Programme.

−	[[Category:~~Articles_needing_more_work~~]]	+	[[Category:DCN_Commentary]] [[Category:DCN_Event]] [[Category:DCN_News]] [[Category:DCN_Organisation]] [[Category:DCN_Policy]] [[Category:DCN_Specification]] [[Category:DCN_Standard]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Standards_/_measurements]] [[Category:Sustainability]]

Editor at 08:22, 21 May 2025

2025-05-21T08:22:28Z

Show changes

Editor at 08:12, 21 May 2025

2025-05-21T08:12:01Z

Editor at 06:42, 21 May 2025

2025-05-21T06:42:06Z

← Older revision		Revision as of 06:42, 21 May 2025
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−	The Boiler Upgrade Scheme supports low-carbon heating with over £328 million in grants for 49,000+ installations. To scale up, the consultation explores third-party finance, expanded tech eligibility, better consumer protection, and streamlined regulations. It invites input from homeowners, installers, finance, and energy sectors to enhance clean heat transitions and standards.	+	= Introduction =

−	Expanding System Eligibility under the BUS Multi-technology systems	+	The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022, it supports low-carbon heating with over £328 million in grants for 49,000+ installations. After a slow start with only one third of the low-carbon heating scheme’s annual budget having been used on February of 2023, the scheme has seen a gradual year on year increase. By the end of September 2024 applications reached 55,095, 12% higher than in August, by the end of January 2025, a total of 58,883 vouchers had been issued, an increase in applications, with a total of 3,661 applications across all technology types, a 29% increase compared to December 2024 and a 79% increase compared to January 2024.
		+
		+	To scale up the scheme further the government consultation, which was published in at the end of April 2025 with closing date of 11 June 2025, explores third-party finance, expanding the technology that is eligible, improving consumer protection, and streamlining the regulations. The consultation invites input from homeowners, installers, finance, and energy sectors to enhance clean heat transitions and standards. The full consultation with all 31 questions of Part 1: Boiler Upgrade Scheme (BUS) and 5 questions of Part 2: Certification requirements for clean heat schemes can be viewed by visiting "[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes Open consultation: Boiler Upgrade Scheme and certification requirements for clean heat schemes]". Below is a brief summary of some of the key points.
		+
		+	= Expanding System Eligibility under the BUS Multi-technology systems =

	The scheme currently supports hydronic heat pumps as the sole/main heating source, but recognises benefits in allowing them alongside other low-carbon technologies. Innovations like solar-powered hot water and heat batteries offer flexible solutions, especially for properties with constraints. The consultation explores adapting rules to accommodate diverse heating system configurations and needs.		The scheme currently supports hydronic heat pumps as the sole/main heating source, but recognises benefits in allowing them alongside other low-carbon technologies. Innovations like solar-powered hot water and heat batteries offer flexible solutions, especially for properties with constraints. The consultation explores adapting rules to accommodate diverse heating system configurations and needs.
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	The government proposes amending BUS regulations to allow heat pumps alongside other low-carbon technologies while maintaining key restrictions. Hot water-only heat pumps would remain ineligible. All additional heating must be electric, not fossil fuel-based. The heat pump must meet full space heating demand, and grants would only cover BUS-eligible technologies.		The government proposes amending BUS regulations to allow heat pumps alongside other low-carbon technologies while maintaining key restrictions. Hot water-only heat pumps would remain ineligible. All additional heating must be electric, not fossil fuel-based. The heat pump must meet full space heating demand, and grants would only cover BUS-eligible technologies.

−	Air-to-air heat pumps	+	= Air-to-air heat pumps =

	The scheme currently supports hydronic heat pumps but excludes air-to-air heat pumps (AAHPs). However, due to their suitability for space-constrained or non-hydronic homes, the government is considering expanding BUS to include AAHPs that provide heating (and optionally cooling). This would offer consumers more flexible, climate-adaptive, low-carbon heating options.		The scheme currently supports hydronic heat pumps but excludes air-to-air heat pumps (AAHPs). However, due to their suitability for space-constrained or non-hydronic homes, the government is considering expanding BUS to include AAHPs that provide heating (and optionally cooling). This would offer consumers more flexible, climate-adaptive, low-carbon heating options.
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	The government proposes a lower grant tier for air-to-air heat pumps (AAHPs), reflecting their lower installation costs—especially in small homes without hydronic systems. Estimated AAHP installation costs average £3,900. Suggested grant levels are £1,000 (covering extra cost vs. electric heaters) or £2,000 (covering over half the cost). Feedback is invited on appropriate funding levels.		The government proposes a lower grant tier for air-to-air heat pumps (AAHPs), reflecting their lower installation costs—especially in small homes without hydronic systems. Estimated AAHP installation costs average £3,900. Suggested grant levels are £1,000 (covering extra cost vs. electric heaters) or £2,000 (covering over half the cost). Feedback is invited on appropriate funding levels.

−	Electric heating technologies	+	= Electric heating technologies =

	While most homes are expected to adopt heat pumps, the government acknowledges that alternatives may be needed in some cases. It is considering expanding the Boiler Upgrade Scheme to support other electric heating technologies, such as electric boilers, infrared panels, and heat batteries. These offer lower installation costs but higher running costs and lower efficiency. Heat batteries show promise, especially when used with time-of-use tariffs, though correct sizing and charging are crucial. An MCS standard for heat battery installation is in development. Ongoing research and stakeholder input will inform future eligibility and support decisions.		While most homes are expected to adopt heat pumps, the government acknowledges that alternatives may be needed in some cases. It is considering expanding the Boiler Upgrade Scheme to support other electric heating technologies, such as electric boilers, infrared panels, and heat batteries. These offer lower installation costs but higher running costs and lower efficiency. Heat batteries show promise, especially when used with time-of-use tariffs, though correct sizing and charging are crucial. An MCS standard for heat battery installation is in development. Ongoing research and stakeholder input will inform future eligibility and support decisions.

−	Allowing Third-Party Ownership agreements under the BUS	+	= Allowing Third-Party Ownership agreements under the BUS =

	To make low-carbon heating more accessible, the government proposes allowing third-party ownership agreements—such as leases or hire purchase—alongside the Boiler Upgrade Scheme (BUS). This change would remove the current requirement for property owners to own the system outright, helping reduce upfront costs. The aim is to support more households, particularly those without savings, and encourage private financing options while maintaining consumer protections. This option would apply only to hydronic heat pumps, not other technologies like biomass boilers. Feedback is sought on appropriate safeguards and implementation.		To make low-carbon heating more accessible, the government proposes allowing third-party ownership agreements—such as leases or hire purchase—alongside the Boiler Upgrade Scheme (BUS). This change would remove the current requirement for property owners to own the system outright, helping reduce upfront costs. The aim is to support more households, particularly those without savings, and encourage private financing options while maintaining consumer protections. This option would apply only to hydronic heat pumps, not other technologies like biomass boilers. Feedback is sought on appropriate safeguards and implementation.

−	Hire-purchase or conditional sale agreement	+	= Hire-purchase or conditional sale agreement =

	The government proposes enabling third-party ownership agreements—like hire purchase and conditional sale—alongside the Boiler Upgrade Scheme (BUS), allowing consumers to pay for hydronic heat pumps in instalments. These agreements, likely to be regulated under the Consumer Credit Act and overseen by the FCA, offer key consumer protections such as affordability checks, cancellation rights, and access to the Financial Ombudsman Service. This aims to improve affordability and accessibility while maintaining strong safeguards for consumers.		The government proposes enabling third-party ownership agreements—like hire purchase and conditional sale—alongside the Boiler Upgrade Scheme (BUS), allowing consumers to pay for hydronic heat pumps in instalments. These agreements, likely to be regulated under the Consumer Credit Act and overseen by the FCA, offer key consumer protections such as affordability checks, cancellation rights, and access to the Financial Ombudsman Service. This aims to improve affordability and accessibility while maintaining strong safeguards for consumers.

−	Hire-purchase or conditional sale agreement combined with energy tariff billed in kilowatt hours (kWh)	+	= Hire-purchase or conditional sale agreement combined with energy tariff billed in kilowatt hours (kWh) =

	The government proposes allowing hire-purchase or conditional sale agreements to be bundled with an energy tariff under the Boiler Upgrade Scheme (BUS). These would remain separate contracts to preserve consumer flexibility, but could be paid as one monthly bill. Energy tariffs must be billed in kWh for transparent cost comparisons. Consumer protections from financial regulations would cover the heat pump agreement, while Ofgem rules would govern the energy tariff, ensuring users can switch suppliers without losing their heating system. This model aims to simplify payments while maintaining robust protections and choice for consumers.		The government proposes allowing hire-purchase or conditional sale agreements to be bundled with an energy tariff under the Boiler Upgrade Scheme (BUS). These would remain separate contracts to preserve consumer flexibility, but could be paid as one monthly bill. Energy tariffs must be billed in kWh for transparent cost comparisons. Consumer protections from financial regulations would cover the heat pump agreement, while Ofgem rules would govern the energy tariff, ensuring users can switch suppliers without losing their heating system. This model aims to simplify payments while maintaining robust protections and choice for consumers.

−	Consumer hire agreement	+	= Consumer hire agreement =

	Consumer hire agreements (leasing) differ from hire-purchase and conditional sale as the consumer never owns the heating system but pays a monthly fee to use it for a set period. These agreements over three months are regulated under the Consumer Credit Act (CCA) but have fewer protections than hire-purchase agreements, such as delayed rights to terminate and no FCA creditworthiness checks. This means leasing offers lower upfront costs but less consumer control and protection compared to ownership models.		Consumer hire agreements (leasing) differ from hire-purchase and conditional sale as the consumer never owns the heating system but pays a monthly fee to use it for a set period. These agreements over three months are regulated under the Consumer Credit Act (CCA) but have fewer protections than hire-purchase agreements, such as delayed rights to terminate and no FCA creditworthiness checks. This means leasing offers lower upfront costs but less consumer control and protection compared to ownership models.

−	Heat as a service agreement	+	= Heat as a service agreement =

	‘Heat as a service’ agreements charge property owners a monthly fee based on the amount of heat produced or to maintain a set temperature, covering the heating system, maintenance, and energy. The provider owns the system throughout, with no ownership transfer to the consumer. As an emerging model, readiness in the industry is uncertain, and providers must comply with Ofgem licensing and relevant laws.		‘Heat as a service’ agreements charge property owners a monthly fee based on the amount of heat produced or to maintain a set temperature, covering the heating system, maintenance, and energy. The provider owns the system throughout, with no ownership transfer to the consumer. As an emerging model, readiness in the industry is uncertain, and providers must comply with Ofgem licensing and relevant laws.

−	Proposed requirements on third-party ownership providers accessing BUS	+	= Proposed requirements on third-party ownership providers accessing BUS =

	This proposal to regulate third-party ownership providers under the BUS is thorough and focused on safeguarding consumers while maintaining installation quality. Key points include:		This proposal to regulate third-party ownership providers under the BUS is thorough and focused on safeguarding consumers while maintaining installation quality. Key points include:
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	This framework would ensure consumers entering third-party ownership agreements under the BUS have access to strong financial protections, clear regulatory oversight, and quality installation standards. It would also create a formal market structure supporting the growth of these financing options alongside government grants.		This framework would ensure consumers entering third-party ownership agreements under the BUS have access to strong financial protections, clear regulatory oversight, and quality installation standards. It would also create a formal market structure supporting the growth of these financing options alongside government grants.

−	Lessons learned from previous government environmental schemes	+	= Lessons learned from previous government environmental schemes =

	This summary of lessons learned from prior interactions between government green home improvement schemes and third-party ownership agreements highlights key risks and consumer protection gaps. It reflects a very thoughtful and realistic approach to designing the new BUS framework with these issues in mind. Key points to note:		This summary of lessons learned from prior interactions between government green home improvement schemes and third-party ownership agreements highlights key risks and consumer protection gaps. It reflects a very thoughtful and realistic approach to designing the new BUS framework with these issues in mind. Key points to note:

Editor at 05:57, 21 May 2025

2025-05-21T05:57:10Z

← Older revision		Revision as of 05:57, 21 May 2025
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	=== Enhancing consumer protections under the BUS ===		=== Enhancing consumer protections under the BUS ===

−	r.	+	= Related articles on Designing Buildings =
		+
		+	* Accredited energy assessor.
		+	* Are Energy Performance Certificates accurate?
		+	* Boiler Upgrade Scheme.
		+	* ECA urges Government to uphold 13.2 billion Warm Homes manifesto commitment
		+	* Heat Training Grant.
		+	* Hydronic system
		+	* Minimum energy efficiency standard (MEES).
		+	* The Home Energy Model and Future Homes Standard assessment wrapper.
		+	* The Warm Homes Plan and existing policies to help with energy bills.
		+	* Treasury responds to sector submission on Labour Warm Homes manifesto pledge.
		+	* Up to 300,000 homes to benefit from upgrades with the rollout of the Warm Homes Plan in 2025.
		+	* Waves of warmer homes grants for the rental sector.
		+	* What the political party manifestos say on housebuilding and building safety.
		+	* Warm Homes Plan.
		+	* Warm homes programme.
		+	* Warm homes programme, Wales.
		+	* Warm Home Discount scheme.
		+	* Warm Homes Local Grant.
		+	* Warm Homes Skills Programme.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 21:37, 20 May 2025

2025-05-20T21:37:19Z

← Older revision		Revision as of 21:37, 20 May 2025
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	Other scheme eligibility requirements that may deter uptake.		Other scheme eligibility requirements that may deter uptake.

−	Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas ~~boiler~~.	+	Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas boile
		+
		+	=== Enhancing consumer protections under the BUS ===
		+
		+	r.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 21:36, 20 May 2025

2025-05-20T21:36:38Z

Show changes

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The Boiler Upgrade Scheme supports low-carbon heating with over £328 million in grants for 49,000+ installations. To scale up, the consultation explores third-party finance, expanded tech eligibility, better consumer protection, and streamlined regulations. It invites input from homeowners, installers, finance, and energy sectors to enhance clean heat transitions and standards.

[[Category:Articles_needing_more_work]]

← Older revision		Revision as of 08:12, 21 May 2025
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	The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022, it supports low-carbon heating with over £328 million in grants for 49,000+ installations. After a slow start with only one third of the low-carbon heating scheme’s annual budget having been used on February of 2023, the scheme has seen a gradual year on year increase. By the end of September 2024 applications reached 55,095, 12% higher than in August, by the end of January 2025, a total of 58,883 vouchers had been issued, an increase in applications, with a total of 3,661 applications across all technology types, a 29% increase compared to December 2024 and a 79% increase compared to January 2024.		The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022, it supports low-carbon heating with over £328 million in grants for 49,000+ installations. After a slow start with only one third of the low-carbon heating scheme’s annual budget having been used on February of 2023, the scheme has seen a gradual year on year increase. By the end of September 2024 applications reached 55,095, 12% higher than in August, by the end of January 2025, a total of 58,883 vouchers had been issued, an increase in applications, with a total of 3,661 applications across all technology types, a 29% increase compared to December 2024 and a 79% increase compared to January 2024.
		+
		+	= Part 1: Boiler Upgrade Scheme (BUS) consultation =
		+
		+	== Stimulating further demand for the BUS ==

	To scale up the scheme further the government consultation, which was published in at the end of April 2025 with closing date of 11 June 2025, explores third-party finance, expanding the technology that is eligible, improving consumer protection, and streamlining the regulations. The consultation invites input from homeowners, installers, finance, and energy sectors to enhance clean heat transitions and standards. The full consultation with all 31 questions of Part 1: Boiler Upgrade Scheme (BUS) and 5 questions of Part 2: Certification requirements for clean heat schemes can be viewed by visiting "[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes Open consultation: Boiler Upgrade Scheme and certification requirements for clean heat schemes]". Below is a brief summary of some of the key points.		To scale up the scheme further the government consultation, which was published in at the end of April 2025 with closing date of 11 June 2025, explores third-party finance, expanding the technology that is eligible, improving consumer protection, and streamlining the regulations. The consultation invites input from homeowners, installers, finance, and energy sectors to enhance clean heat transitions and standards. The full consultation with all 31 questions of Part 1: Boiler Upgrade Scheme (BUS) and 5 questions of Part 2: Certification requirements for clean heat schemes can be viewed by visiting "[https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes Open consultation: Boiler Upgrade Scheme and certification requirements for clean heat schemes]". Below is a brief summary of some of the key points.

−	= Expanding System Eligibility under the BUS Multi-technology systems =	+	== Expanding System Eligibility under the BUS Multi-technology systems ==

	The scheme currently supports hydronic heat pumps as the sole/main heating source, but recognises benefits in allowing them alongside other low-carbon technologies. Innovations like solar-powered hot water and heat batteries offer flexible solutions, especially for properties with constraints. The consultation explores adapting rules to accommodate diverse heating system configurations and needs.		The scheme currently supports hydronic heat pumps as the sole/main heating source, but recognises benefits in allowing them alongside other low-carbon technologies. Innovations like solar-powered hot water and heat batteries offer flexible solutions, especially for properties with constraints. The consultation explores adapting rules to accommodate diverse heating system configurations and needs.
Line 11:		Line 15:
	The government proposes amending BUS regulations to allow heat pumps alongside other low-carbon technologies while maintaining key restrictions. Hot water-only heat pumps would remain ineligible. All additional heating must be electric, not fossil fuel-based. The heat pump must meet full space heating demand, and grants would only cover BUS-eligible technologies.		The government proposes amending BUS regulations to allow heat pumps alongside other low-carbon technologies while maintaining key restrictions. Hot water-only heat pumps would remain ineligible. All additional heating must be electric, not fossil fuel-based. The heat pump must meet full space heating demand, and grants would only cover BUS-eligible technologies.

−	= Air-to-air heat pumps =	+	== Air-to-air heat pumps ==

	The scheme currently supports hydronic heat pumps but excludes air-to-air heat pumps (AAHPs). However, due to their suitability for space-constrained or non-hydronic homes, the government is considering expanding BUS to include AAHPs that provide heating (and optionally cooling). This would offer consumers more flexible, climate-adaptive, low-carbon heating options.		The scheme currently supports hydronic heat pumps but excludes air-to-air heat pumps (AAHPs). However, due to their suitability for space-constrained or non-hydronic homes, the government is considering expanding BUS to include AAHPs that provide heating (and optionally cooling). This would offer consumers more flexible, climate-adaptive, low-carbon heating options.
Line 21:		Line 25:
	The government proposes a lower grant tier for air-to-air heat pumps (AAHPs), reflecting their lower installation costs—especially in small homes without hydronic systems. Estimated AAHP installation costs average £3,900. Suggested grant levels are £1,000 (covering extra cost vs. electric heaters) or £2,000 (covering over half the cost). Feedback is invited on appropriate funding levels.		The government proposes a lower grant tier for air-to-air heat pumps (AAHPs), reflecting their lower installation costs—especially in small homes without hydronic systems. Estimated AAHP installation costs average £3,900. Suggested grant levels are £1,000 (covering extra cost vs. electric heaters) or £2,000 (covering over half the cost). Feedback is invited on appropriate funding levels.

−	= Electric heating technologies =	+	== Electric heating technologies ==

	While most homes are expected to adopt heat pumps, the government acknowledges that alternatives may be needed in some cases. It is considering expanding the Boiler Upgrade Scheme to support other electric heating technologies, such as electric boilers, infrared panels, and heat batteries. These offer lower installation costs but higher running costs and lower efficiency. Heat batteries show promise, especially when used with time-of-use tariffs, though correct sizing and charging are crucial. An MCS standard for heat battery installation is in development. Ongoing research and stakeholder input will inform future eligibility and support decisions.		While most homes are expected to adopt heat pumps, the government acknowledges that alternatives may be needed in some cases. It is considering expanding the Boiler Upgrade Scheme to support other electric heating technologies, such as electric boilers, infrared panels, and heat batteries. These offer lower installation costs but higher running costs and lower efficiency. Heat batteries show promise, especially when used with time-of-use tariffs, though correct sizing and charging are crucial. An MCS standard for heat battery installation is in development. Ongoing research and stakeholder input will inform future eligibility and support decisions.

−	= Allowing Third-Party Ownership agreements under the BUS =	+	== Allowing Third-Party Ownership agreements under the BUS ==

	To make low-carbon heating more accessible, the government proposes allowing third-party ownership agreements—such as leases or hire purchase—alongside the Boiler Upgrade Scheme (BUS). This change would remove the current requirement for property owners to own the system outright, helping reduce upfront costs. The aim is to support more households, particularly those without savings, and encourage private financing options while maintaining consumer protections. This option would apply only to hydronic heat pumps, not other technologies like biomass boilers. Feedback is sought on appropriate safeguards and implementation.		To make low-carbon heating more accessible, the government proposes allowing third-party ownership agreements—such as leases or hire purchase—alongside the Boiler Upgrade Scheme (BUS). This change would remove the current requirement for property owners to own the system outright, helping reduce upfront costs. The aim is to support more households, particularly those without savings, and encourage private financing options while maintaining consumer protections. This option would apply only to hydronic heat pumps, not other technologies like biomass boilers. Feedback is sought on appropriate safeguards and implementation.

−	= Hire-purchase or conditional sale agreement =	+	== Hire-purchase or conditional sale agreement ==

	The government proposes enabling third-party ownership agreements—like hire purchase and conditional sale—alongside the Boiler Upgrade Scheme (BUS), allowing consumers to pay for hydronic heat pumps in instalments. These agreements, likely to be regulated under the Consumer Credit Act and overseen by the FCA, offer key consumer protections such as affordability checks, cancellation rights, and access to the Financial Ombudsman Service. This aims to improve affordability and accessibility while maintaining strong safeguards for consumers.		The government proposes enabling third-party ownership agreements—like hire purchase and conditional sale—alongside the Boiler Upgrade Scheme (BUS), allowing consumers to pay for hydronic heat pumps in instalments. These agreements, likely to be regulated under the Consumer Credit Act and overseen by the FCA, offer key consumer protections such as affordability checks, cancellation rights, and access to the Financial Ombudsman Service. This aims to improve affordability and accessibility while maintaining strong safeguards for consumers.

−	= Hire-purchase or conditional sale agreement combined with energy tariff billed in kilowatt hours (kWh) =	+	== Hire-purchase or conditional sale agreement combined with energy tariff billed in kilowatt hours (kWh) ==

	The government proposes allowing hire-purchase or conditional sale agreements to be bundled with an energy tariff under the Boiler Upgrade Scheme (BUS). These would remain separate contracts to preserve consumer flexibility, but could be paid as one monthly bill. Energy tariffs must be billed in kWh for transparent cost comparisons. Consumer protections from financial regulations would cover the heat pump agreement, while Ofgem rules would govern the energy tariff, ensuring users can switch suppliers without losing their heating system. This model aims to simplify payments while maintaining robust protections and choice for consumers.		The government proposes allowing hire-purchase or conditional sale agreements to be bundled with an energy tariff under the Boiler Upgrade Scheme (BUS). These would remain separate contracts to preserve consumer flexibility, but could be paid as one monthly bill. Energy tariffs must be billed in kWh for transparent cost comparisons. Consumer protections from financial regulations would cover the heat pump agreement, while Ofgem rules would govern the energy tariff, ensuring users can switch suppliers without losing their heating system. This model aims to simplify payments while maintaining robust protections and choice for consumers.

−	= Consumer hire agreement =	+	== Consumer hire agreement ==

	Consumer hire agreements (leasing) differ from hire-purchase and conditional sale as the consumer never owns the heating system but pays a monthly fee to use it for a set period. These agreements over three months are regulated under the Consumer Credit Act (CCA) but have fewer protections than hire-purchase agreements, such as delayed rights to terminate and no FCA creditworthiness checks. This means leasing offers lower upfront costs but less consumer control and protection compared to ownership models.		Consumer hire agreements (leasing) differ from hire-purchase and conditional sale as the consumer never owns the heating system but pays a monthly fee to use it for a set period. These agreements over three months are regulated under the Consumer Credit Act (CCA) but have fewer protections than hire-purchase agreements, such as delayed rights to terminate and no FCA creditworthiness checks. This means leasing offers lower upfront costs but less consumer control and protection compared to ownership models.

−	= Heat as a service agreement =	+	== Heat as a service agreement ==

	‘Heat as a service’ agreements charge property owners a monthly fee based on the amount of heat produced or to maintain a set temperature, covering the heating system, maintenance, and energy. The provider owns the system throughout, with no ownership transfer to the consumer. As an emerging model, readiness in the industry is uncertain, and providers must comply with Ofgem licensing and relevant laws.		‘Heat as a service’ agreements charge property owners a monthly fee based on the amount of heat produced or to maintain a set temperature, covering the heating system, maintenance, and energy. The provider owns the system throughout, with no ownership transfer to the consumer. As an emerging model, readiness in the industry is uncertain, and providers must comply with Ofgem licensing and relevant laws.

−	= Proposed requirements on third-party ownership providers accessing BUS =	+	== Proposed requirements on third-party ownership providers accessing BUS ==

	This proposal to regulate third-party ownership providers under the BUS is thorough and focused on safeguarding consumers while maintaining installation quality. Key points include:		This proposal to regulate third-party ownership providers under the BUS is thorough and focused on safeguarding consumers while maintaining installation quality. Key points include:
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	This framework would ensure consumers entering third-party ownership agreements under the BUS have access to strong financial protections, clear regulatory oversight, and quality installation standards. It would also create a formal market structure supporting the growth of these financing options alongside government grants.		This framework would ensure consumers entering third-party ownership agreements under the BUS have access to strong financial protections, clear regulatory oversight, and quality installation standards. It would also create a formal market structure supporting the growth of these financing options alongside government grants.

−	= Lessons learned from previous government environmental schemes =	+	== Lessons learned from previous government environmental schemes ==

	This summary of lessons learned from prior interactions between government green home improvement schemes and third-party ownership agreements highlights key risks and consumer protection gaps. It reflects a very thoughtful and realistic approach to designing the new BUS framework with these issues in mind. Key points to note:		This summary of lessons learned from prior interactions between government green home improvement schemes and third-party ownership agreements highlights key risks and consumer protection gaps. It reflects a very thoughtful and realistic approach to designing the new BUS framework with these issues in mind. Key points to note:
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	Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas boile		Invitation for views on how to simplify and streamline the installation process, making it as easy as replacing a gas boile

−	=== Enhancing consumer protections under the BUS ===	+	== Enhancing consumer protections under the BUS ==
		+
		+	== Grant Payments under the BUS ==
		+
		+	= Part 2: Certification requirements for clean heat schemes consultation =
		+
		+	== Proposals to require the Microgeneration Certification Scheme (MCS) as the sole certification scheme for UK government clean heat schemes. ==

−	= Related articles on Designing Buildings =	+	== Related articles on Designing Buildings ==

	* Accredited energy assessor.		* Accredited energy assessor.