Boiler Upgrade Scheme

[edit] Update April 2025

On 30 April 2025 the Labour government published a consultation seeking views on proposed amendments to the existing Boiler Upgrade Scheme (BUS) and to certification requirements for BUS and other clean heat schemes. The consultation (Closing date 11 June 2025) was set out in two parts: Part 1: Amendments to the Boiler Upgrade Scheme and Part 2: Certification of clean heat installations.

Part 1 seeking views on proposed amendments to the Boiler Upgrade Scheme (BUS) which provides grants to support property owners in transitioning to low carbon heating (LCH) systems. Proposed changes being designed to increase access, stimulate further demand and enhance existing consumer protections, including:

• allowing new heat pump purchase options alongside the BUS grant
• expanding eligibility for LCH technologies
• reviewing potential barriers to the consumer installation journey
• enhancing consumer protection by simplifying certification requirements and requiring installers to deduct grants upfront

Part 2 seeking views on the government’s proposal to require the Microgeneration Certification Scheme (MCS) as the sole certification scheme for clean heat installations, remove the option for multiple certification schemes to certify installations. delivered through:

• BUS
• Energy Company Obligation 4
• Warm Homes: Local Grant
• Warm Homes: Social Housing Fund

[edit] Update September 2023

From 23 October 2023, the grant level for air source heat pumps and ground source heat pumps will increase from £5,000 (air source) and £6,000 (ground source) to £7,500.

[edit] Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is intended to support the decarbonisation of heat in buildings and is managed by Ofgem. 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. BUS supplies a grant to cover part of the cost of replacing a fossil fuel heating systems with a heat pump or biomass boiler (fossil fuel heating systems include oil, gas or electric)

[edit] First Year

The Boiler Upgrade Scheme (BUS) was launched on 23 May 2022 by February of 2023 only one third of the low-carbon heating scheme’s annual budget had used. The committee said that, by the end of January, £49.7m in vouchers had been issued, equating to 7,641 installations, according to Ofgem figures. The scheme has been allocated £150m a year in funds for three years. In a letter sent to the net zero secretary, Lord Callanan, the committee warned that if the current take-up rate continued just half of the allocated budget would be used. Saying the government target of hitting 600,000 installations a year was “very unlikely” to be met. In March 2023, the BUS was extended until 2028.

It continues to be available to provide upfront capital grants towards the cost of installing approved heat pumps and biomass boilers in homes and small non-domestic buildings in England and Wales. The eligibility criteria is as follows and more information and application can be found here:

[edit] Eligibility

• The property must be a home or small non-domestic building in England or Wales. The maximum installation capacity of 45kWth covers the vast majority of these properties.
• The property must have a valid energy performance certificate with no outstanding recommendations for loft or cavity wall insulation. (There are some exceptions to this, please speak to the installer for further information).
• The commissioning date of the low carbon heating system must be on or after 1 April 2022.
• 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.
• It must be for 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.
• One can still apply if in receipt of 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.

[edit] Installer led application

The application is installer-led, with the installer applying for the grant on the property owner’s behalf. The installer must need be certified by the Microgeneration Certification System (MCS), a nationally recognised standards organisation that gives assurance of the quality of product and competence of installer, ensures that the installer complies with consumer protection standards.

The installer will:

• Discount the voucher amount from the customers quote.
• Apply to Ofgem, the scheme administrator, for a grant voucher.
• Provide customers details to Ofgem, who will then email the customer asking for consent to approve 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.

This article is based on the Government guidance and background for further information and application follow this link.

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