To help the UK government meet its target of making the UK net zero by 2050, the government is providing grants of up to £6,000 towards a low-carbon heating system. Continue reading to find out more about what heating systems are available, if you are eligible for a grant, and how to apply.
Last updated - 16/09/2022
Estimated reading time - 5 minutes
The Strong>Boiler Upgrade Scheme (BUS) is a UK government initiative that provides grants to homeowners to offset the initial upfront cost of installing low-carbon heating systems such as heat pumps and biomass boilers.
The Boiler Upgrade Scheme is available to all domestic and non-domestic properties in England and Wales and runs from 2022 to 2025. During these three years, £450 million of grant funding will be made available to property owners on a first come, first served basis.
The scheme is administered by Ofgem. Ofgem will be responsible for processing grant applications and will make payments to the installers following successful applications.
Currently, the majority of UK households use carbon-emitting fossil fuels such as gas or oil to heat their homes. These fossil fuels have a negative effect on the environment and on our climate.
According to the Committee on Climate Change, around 14% of the UK’s carbon emissions come from heating our homes. The Boiler Upgrade Scheme will be a key driver in meeting the government's objective of making the UK net zero by 2050 and will also help to ensure all new heating system installations will be low carbon by 2035.
Net zero means achieving a balance between the carbon emitted into the atmosphere and the carbon removed from it. Net zero will be achieved when the amount of carbon we add to the atmosphere is less than or equal to the amount removed.
Not only will installing a low-carbon heating system produce fewer greenhouse gases, but it could also reduce a household’s energy bills.
The Boiler Upgrade Scheme provides grants for installing the following low-carbon heating systems:
Please note, for any heat pump to be eligible for the grant, it must have a seasonal coefficient of performance of at least 2.8. Your chosen installer will be able to provide you with more details
It is also important to note that, in this instance, the Boiler Upgrade Scheme includes water source heat pumps within the same category as ground source heat pumps. Water source heat pumps extract heat from a body of water and converts it into energy to heat your property.
Biomass boilers are only eligible for this scheme if they are in rural locations (ones with fewer than 10,000 residents) and in properties that are not connected to the gas grid.
The Boiler Upgrade Scheme provides funding in the form of a grant of up to £6,000 towards the cost and installation of a new low-carbon heating system.
Grants are to be applied for by your chosen heating system installer. The grant will then be discounted from the total purchase and installation cost.
Depending on your eligibility, you may be able to claim the following:
Purchasing and installing an air heat pump can cost on average between £7,000 and £13,000, while the cost and installation of a ground heat pump can cost up to £20,000.
The cost and installation of a biomass boiler depends on the type you are installing. A manually-fed biomass log boiler might cost between £5,000 and £12,000, whereas an automatically-fed biomass pellet boiler can cost up to £25,000.
To be eligible for the Boiler Upgrade Scheme, you must meet the following requirements:
To check your property's EPC report, click here.
Grants are available for:
Self-build properties must have:
For your chosen low carbon heating system to be eligible for the Boiler Upgrade Scheme, it must:
If you are interested in receiving a grant for a low-carbon heating system under the Boiler Upgrade Scheme, you will have to follow these steps:
Contact an MSC certified installer. MSC is an organisation that certifies low carbon products, installers and their installations.
To find an MSC certified installer, click here.