How Does the Boiler Upgrade Scheme (BUS) Make Heat Pumps Affordable?
As part of the UK’s commitment to achieving net-zero carbon emissions by 2050, the government is encouraging homeowners to adopt renewable heating solutions. One of the most promising options is the air source heat pump (ASHP), which offers an eco-friendly and energy-efficient way to heat homes. However, the upfront cost of installing an ASHP can be a deterrent for many. Enter the Boiler Upgrade Scheme (BUS), which provides grants of up to £7,500 to help cover installation costs, making these sustainable heating systems more accessible. In this article, Adlår’s team of heat pump experts will explain everything you need to know about this scheme, from its benefits and eligibility criteria to how it can help homeowners transition to sustainable heating.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme (BUS) is a government-funded initiative designed to help homeowners in England or Wales switch from traditional fossil fuel boilers to low-carbon heating systems such as air source heat pumps (ASHPs) and ground source heat pumps (GSHPs). Launched in April 2022, this scheme is part of the UK’s broader strategy to reduce reliance on fossil fuels and promote renewable energy solutions. It also contributes to the UK’s net-zero emissions target for 2050, helping reduce the nation’s carbon footprint and reliance on gas and oil. By providing financial support through grants, the BUS aims to remove the primary barrier of high upfront costs, allowing more households to consider this eco-friendly heating option.How Much Does the Boiler Upgrade Scheme Offer?
Under the BUS, eligible homeowners can receive a grant of:- £7,500 towards the installation of an air source heat pump (ASHP).
- £7,500 for the installation of a ground source heat pump (GSHP).
- £5,000 towards the cost of a biomass boiler.
How Much Does it Cost to Install an Air Source Heat Pump?
The cost of installing an air source heat pump in your UK home will depend on a number of factors, including:- The features and efficiency of your chosen ASHP (more efficient, near silent pumps will cost more than off-the-shelf options)
- The size of/number of bedrooms in your property
- How complex the installation will be
- If you also need to upgrade your radiators or add underfloor heating
How Does the Boiler Upgrade Scheme Make Heat Pumps More Affordable?
1. Lower Initial Installation Costs
The upfront cost of installing an air source heat pump can be a significant barrier for many households. The Boiler Upgrade Scheme grant of £7,500 directly reduces this expense, bringing it closer to parity with a traditional boiler replacement. Therefore, the BUS makes it feasible for more UK homeowners to invest in a high-efficiency heat pump.2. Encourages Long-Term Savings
Air source heat pumps can lower energy bills by up to 40% compared to electric or oil heating systems, but the high initial cost often prevents timely installation. By negating some of this financial burden with a Boiler Upgrade Scheme grant, homeowners can start seeing financial benefits sooner, with long-term savings on energy bills making the upfront investment worthwhile.3. Aids in Securing Energy Independence
During the recent energy crisis, the UK has seen rising gas prices and fluctuating energy costs, which can lead to high monthly bills. Switching to an ASHP with the help of the BUS gives homeowners more control over their heating expenses by reducing reliance on fossil fuels. With energy independence, households can avoid the full impact of energy market volatility.4. Boosts Property Value
As the demand for eco-friendly homes rises, an energy-efficient heating system, like an air source heat pump, can increase the value of your property by up to 3%. Installing an efficient ASHP with government support from the BUS also helps improve your home’s Energy Performance Certificate (EPC) rating, which not only reduces ongoing running costs but can also be an appealing factor to future buyers.Who is Eligible for the Boiler Upgrade Scheme?
To qualify for the Boiler Upgrade Scheme, certain eligibility criteria must be met:- Location – Your property must be located in England or Wales, as the scheme currently excludes Northern Ireland and Scotland.
- Property Type & Ownership – Both domestic and small non-domestic buildings are eligible for the grant, but you must own the property that you are applying for.
- Existing Boiler System – The property must currently rely on a traditional heating system such as gas, oil, electric, or LPG.
- Installer Requirements – The installation must be carried out by a Microgeneration Certification Scheme (MCS)-certified installer, to ensure quality and compliance with scheme standards.
- Valid EPC – Your property must have a valid Energy Performance Certificate (EPC), dated within the last 10 years.
- Building Compliance – Properties must meet minimum insulation standards to qualify, as heat pumps work most effectively in well-insulated homes.
Exclusions
Boiler Upgrade Scheme grants are not available for:- New-build properties, unless the homeowner is self-building.
- Social housing, shared ownership homes, or any rental or owned accommodation that is provided at lower than market value
- Properties that have already benefited from government funding for heat pump installation.
How to Apply for the Boiler Upgrade Scheme Grant
Applying for the BUS grant is a straightforward process:- Choose an MCS-Certified Installer – Homeowners need to select a certified installer, who will guide them through the eligibility requirements and discuss system options.
- Application Process – The installer submits the grant application on the homeowner’s behalf. Once approved, the grant amount is deducted directly from the installation cost.
- Installation and Payment – After approval, the ASHP installation proceeds, and the homeowner only pays the reduced balance after the grant has been applied.
