About the Boiler Upgrade Scheme (BUS)
Following a consultation with various industry representatives and individuals, the UK government have announced proposals for a new £450 million Boiler Upgrade Scheme (previously named the Clean Heat Grant) from 2022, to support the installation of low-carbon heating systems following the closure of the Domestic Renewable Heat Incentive.
This will provide upfront capital grants of £5,000 to households and small businesses looking to install heat pumps and, in some limited circumstances, biomass boilers. By helping grow low-carbon heat supply chains and driving cost reductions across the market, the scheme hopes to contribute to the UK’s goal of delivering Net Zero and will enable the introduction of planned regulatory and market-based policies.
The government intends to limit its support for new gas heating systems and remove support for new LPG and oil heating systems from 2022, only supporting fuel poor households with new fossil fuel-based heating systems under very limited circumstances.
The government has confirmed it will proceed with the development of the Boiler Upgrade Scheme and intends for it to launch in Spring 2022.
The scheme’s £450m funding is expected to help install 90,000 heat pumps over three years – far fewer than the target of 600,000 a year announced in the Prime Minister’s 10-point plan last November.
The scheme will cover England and Wales. The scheme will have a budget of £450m over 3 years, which is a significant increase from the £100m over 2 years announced at Budget 2020 and set out in the original consultation.
How can we help?
We connect homeowners with approved heat pump installers so you can claim up to £5,000 off the cost your heat pump. Coming soon.
1. Tell us your type of heat pump
There are three types of heat pump - air source heat pumps, ground-source heat pumps and air to water heat pumps. If you're not sure which you need - let us know.
2. Tell us your UK address
Let us know your address and we'll find approved, reputable heat pump installers in your area who can install under the new boiler replacement scheme.
3. Claim your grant
This could save you £1000's on you heat pump installation.
Compare heat pump installation costs
Every heat pump supplier will have different costs. We'll help you to get the best deal.
Commercial or domestic heat pump quotes?
Heat pumps for the home
We can help you to get a lower cost installation for your home heat pump. Heat pumps can reduce your energy bill by up to 50%. Get a quote today and see how much you can save in the long run.
Commercial Heat Pumps
Heat pumps can be used in commercial environments too. If you're planning a construction project, we can help you to find a reputable supplier.
Who qualifies for the boiler upgrade scheme grant?
- Generally, anyone replacing their existing fossil fuel heating system with some exceptions such as custom-build properties.
- Heat pumps will only be eligible where they replace existing fossil fuel systems or direct electric systems. Biomass boilers will only be supported in rural areas and where they replace existing fossil fuel systems, where that system is not fuelled by mains gas, or direct electric systems. This scheme will not support fossil fuel hybrid systems or systems used for process heating.
- The Boiler Upgrade Scheme will provide grants of £5,000 towards the installation and capital costs of (Air-Sourced Heat Pumps) ASHPs and biomass boilers, and grants of £6,000 for (Ground-Sourced Heat Pumps) GSHPs.
- Heat pumps may not be the right solution for everyone as they must be placed outside, and they require indoor space for a hot-water cylinder. As importantly, heat pumps need the rest of the property to be energy efficient, so if your place is badly insulated, you may experience big bills to achieve the same level of warmth and hot water.
- You don’t need to replace your boiler right now – this grant is aimed at people whose boiler is coming to the end of its natural life – so wait until that happens as the heat pump costs are expected to reduce as take-up increases.
- Regardless of where in the boiler replacement cycle you are, it is never too late to make sure your home is well insulated and energy efficient. That is the first step.
What Is a Heat Pump?
- Basically, its operation takes less electricity to produce the same (or more) amount of heat as a conventional fossil fuel burning method therefore reducing the amount of power and therefore emissions needed to heat our homes.
- They work like a fridge in reverse. A fridge works by basically turning its refrigerant from liquid into a gas e.g., when you spray an aerosol on your hand the process of liquid in the can becoming gas through the nozzle makes it feel cold. A fridge repeats this process to keep its contents cool.
- A heat pump does the reverse of a fridge. It absorbs heat from the air or the ground into a liquid refrigerant. It then uses electricity to compress the liquid to increase its temperature and then condenses it again to release that heat.
- That heat is then sent to a home’s radiators or underfloor heating and the remainder can be stored for heating hot water for your taps or shower.
Are heat pumps expensive?
- For domestic housing types today installing an air source heat pump ranges in cost from £7,000 to £14,000. The wide range in heat pump costs is due to the characteristics of the household: mainly its floor area, fabric efficiency and whether it has already got central heating or not.
- However, as the market grows, industry is confident these costs will come down. The Government is setting an ambition to work with industry to reduce costs of installing a heat pump by 25-50% by 2025 and towards parity between heat pumps and gas boilers by 2030.
- For those who do chose to install a heat pump now, the Boiler Upgrade Scheme can provide households with £5,000 grants. In addition to government grants, homeowners can capitalise on falling prices of heat pumps, due to industry innovation, and a reduction in the price of electricity over the coming years, due to work to address market distortions in energy pricing.