Domestic Energy Efficiency Grants
Boiler Upgrade Scheme – BUS
The Boiler Upgrade Scheme (BUS) is a Government initiative to encourage more people in England and Wales to move away from fossil fuels and install more environmentally friendly heating systems, such as heat pumps and biomass boilers.
The scheme runs from 2022 to 2028 and provides upfront capital grants of £5000 or £6000 to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems.
Measures Funded Under BUS
The aim of the Boiler Upgrade Scheme is to incentivise and increase the deployment of low carbon heating. This scheme is part of a wider package of policies introduced by the UK Government to scale up heat pump deployment and support industry to reduce the costs of heat pumps.
It 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.
Boiler Upgrade Scheme Grants:
- £7,500 off the cost and installation of an air source heat pump
- £5,000 off the cost and installation of a biomass boiler
- £7,500 off the cost and installation of a ground source heat pump
These grants help property owners overcome the upfront cost of installing a low carbon heating system.
Note 1: The grants for heat pumps went up on 23 October 2023. If you applied before this date and your installer has not fitted your new heat pump yet, talk to them about cancelling your grant and reapplying to get the increased amount.
Note 2: On 14th March the Government announced that heat pumps would be cheaper and easier for families to install as part of changes to the government’s Boiler Upgrade Scheme. Homeowners will no longer have to install cavity wall or loft insulation to use the scheme, which offers grants of £7,500 off the cost of heat pump installation. Read more >
Eligibility For A BUS Grant
To be eligible for a Boiler Upgrade Scheme grant:
- your property must be a home or small non-domestic building in England or Wales.
- your property should have a maximum installation capacity of 45kWth (this covers the vast majority of homes).
- your property must have a valid energy performance certificate with no outstanding recommendations for loft or cavity wall insulation. (some exceptions apply).
- 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.
- 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.
If you’re not sure if your home has an EPC you can check the EPC register >>>
How To Apply For A Boiler Upgrade Scheme Grant
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 System (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.
Find a Microgeneration Certification System installer >>>
Your chosen installer will:
- discount the voucher amount from your quote.
- 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.