The UK Government has been running its flagship Boiler Upgrade Scheme (BUS) since 23rd May 2022 and was set up primarily to provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.
The scheme aims to provide a grant to those who would like to upgrade their current heating systems to a low-carbon heating system which are much more sustainable and environmentally way to produce energy and heat for their homes.
What Do We Get?
Each property in England and Wales can apply for a one-off grant to help with the installation cost of either an air source heat pump, a ground source heat pump or a biomass boiler.
- £5,000 towards an air source heat pump
- £6,000 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)
- £5,000 towards a biomass boiler
You cannot however obtain a grant for a hybrid heat pump system (for example a combination of gas boiler and air source heat pump).
The system you install must meet specific standards, such as minimum efficiency levels and low carbon emissions.
The system’s maximum capacity must be less than 45kWth – anything over is not eligible.
This will run until 2025 (final date to be announced) as was seen by many in the current government as a perfect opportunity to achieve our net zero emission goals.
The total amount that has been made available by the government is a staggering £450million and is set to cover what they hoped would be an influx of boiler upgrades that will go some way to alleviate the spiralling energy costs experienced by UK homeowners.
The aim is to ensure as many heating systems as possible reach the required standards that are needed to issue a valid energy performance certificate. This can only be obtained once the installation has been completed.
How do We Apply?
The government has set up an easy system in which you first check for your eligibility before going to the application process.
Applications are usually dealt with within 7-10 days but circumstances may change depending whether the application is for domestic, residential or commercial use. all properties that apply for this grant will be subject to checks of old heating systems and whether the property can benefit from a low-carbon heating system.
Once you have been accepted via your eligibility you have to search for a MCS Certified Installer and they supply you with a quote. Once you have agreed on that quote the installer then applies for the grant on your behalf.
Ofgem are the administrators of this scheme and have published a full list of approved installers on their website.
Ofgem will also advise on the criteria necessary for the successful application of the grant if you request this.
Has The Boiler Upgrade Scheme Been Successful?
In short, no it hasn’t. According to a recent report by the BBC the scheme has not been a roaring success.
The House Of Lords recently launched an enquiry into the Boiler Upgrade Scheme as part of the Lords Climate Change Committee in which it said that the take up was so low that our National target for green heating “would unlikely be met”.
But in her letter to the government, Baroness Parminter, chair of the Lords Committee, heavily criticised ministers for not doing more to raise awareness of the scheme – which is on track to issue just half of the allocated grants.
She told the BBC: “The scheme isn’t working as well as it needs to. It is absolutely critical that the government boosts public awareness… we need to give people the confidence to know about why these changes are important.”
Heat pumps use electricity to run and are three times more efficient than a gas boiler, so as we switch to renewable electricity homes will be cheaper to heat and produce less emissions.
One of the many reasons that the low uptake has bee blamed is that the grants simply are not enough for many households, saying that the additional costs were still putting people off as the average installation cost was anywhere between £8000 – £10,000, leaving an average £4000 deficit for most customers.
How Does This Affect Oxfordshire
In essence the scheme is there for everybody and should not be confused with an ongoing Oxfordshire boiler replacement grant that has been in place for some time for those wishing to replace like for like.
Renewable energy is the key word for our future and any chance to make our homes more energy efficient and cost effective will benefit not just the homeowner but the environment and Oxfordshire has seen a sharp rise in energy efficiency with Oxford Energy Strategy being a leading light in low-carbon emissions and how to manage them.
Scotland And Northern Ireland
Unfortunately this scheme does not fully apply to residents of either Scotland or Northern Ireland where an interest-free loan system is still in operation although not entirely focused on all Scottish and Irish households although plans are being considered to open this scheme up to them soon.
Benefits Of The Scheme
For 90,000 homes, the Boiler Upgrade Scheme will reduce the average cost of an air source heat pump from £10,000 to £5,000. According to our calculations on air source heat pump costs, moving from a gas boiler to a heat pump will save you £5,960 overall.
As this is a grant and not a loan you do not have to pay this back to the government therefore making the installation a lot cheaper in the outset. A heat pump is also cheaper to run than your average boiler so the long term savings will benefit you especially with the current rise in energy prices.
The amount differs from household to household but the fact that you are saving on emissions via your new source of energy will also benefit the value of your home. Whilst there is no significant increase in the value of your home the fact that the home is now more energy efficient will increase its ability to sell.
Disadvantages Of Heat Pumps And Biomass Boilers
The fact that they rarely reach the temperatures that a boiler can reach means that your house will need to have an excellent insulation rating to reap the full benefits. One other factor which is a reason for the lack of interest has been put down to the amount of space these heating systems need with ground sourced heat pumps requiring extensive underground pipework.
In Conclusion
The Boiler Upgrade Scheme is there for all residents of England and Wales and those looking to upgrade old boilers should seriously consider this as a viable alternative to a brand new boiler as the impact on the environment is measurably less harmful.
