Boiler Upgrade Scheme (BUS)

Have you heard of the Boiler Upgrade Scheme (BUS)?

We want to let you know what it is and how it might affect you, so we’ve highlighted the key points for you.

What is the Boiler Upgrade Scheme?

Introduced in 2022 BUS offers up-front capital grants to incentivise the installation of low carbon technology, including Air Source Heat Pumps (ASHPs) in homes.

Initially Government had budgeted £450m over three years, but in December 2023 a further £1.5bn was announced to fund deployment under BUS through to 2028.

Following changes to the scheme, grants of £7,500 are available for ASHP, subject to eligibility criteria. For more information see here Apply for the Boiler Upgrade Scheme: Overview - www.gov.uk

BUS is available to consumers in England and Wales.* It is not applicable to social housing and new builds.

For installations in Scotland there is an existing support scheme in place.*

Why has the scheme been developed?

With the energy transition and eventual move from gas boilers to alternatives, the government is offering grants to encourage private homeowners to consider having low carbon heating installed, which will help to grow deployment and support growth.

How does it work?

The grant will be sent via a voucher system. Microgeneration Certification Scheme (MCS) certified installers will need to apply to the Office of Gas and Electricity Markets (Ofgem) for a voucher on behalf of the property owner they’re carrying out the installation for. Once the ASHP has been installed, the installer will need to contact Ofgem to redeem the voucher and submit suitable evidence that the ASHP has been fitted correctly and meets all the criteria.

Eligible installations commissioned from 1st April 2022 may apply for BUS.

What next?

More guidance for Installers will follow from Ofgem in due course and we will keep you updated with everything you need to know.

* www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus
** www.homeenergyscotland.org/find-funding-grants-and-loans/interest-free-loans/overview