Boilers are an essential component of any household, providing heat and hot water throughout the year. However, as boilers age, they become less efficient and more prone to breakdowns, leading to higher energy bills and costly repairs. To combat this issue, the UK Government have implemented a boiler upgrade scheme to encourage homeowners to upgrade their older, less efficient boilers to newer, more energy-efficient models.
These schemes not only help homeowners save money on their energy bills but also contribute to reducing carbon emissions and improving the overall energy efficiency of the housing stock. In this article, we will explore the details of the boiler upgrade scheme and how it can benefit both homeowners and the environment.
What is the Boiler Upgrade scheme?
The Boiler Upgrade Scheme (BUS) is a program initiated by the UK government to support households in replacing their outdated and inefficient boilers with more energy-efficient models. The scheme was launched in 2020 as part of the government’s efforts to reduce carbon dioxide emissions and promote energy efficiency across the UK.
Under the scheme, eligible households can receive financial assistance to cover the cost of replacing their old boilers. The scheme provides vouchers worth up to £5,000, depending on the type of boiler being replaced and the household’s income.
The vouchers can be used to purchase energy-efficient boilers or to install renewable heating systems such as biomass boilers, air source heat pumps, and ground source heat pumps.
The scheme aims to encourage households to switch to energy-efficient heating systems that are both environmentally friendly and cost-effective. By promoting the use of energy-efficient boilers, the government hopes to reduce carbon emissions, improve air quality, and help households save money on their energy bills.
Does the boiler upgrade scheme refresh yearly?
The Boiler Upgrade Scheme has a specified end date of 2025, but the funding for the scheme is replenished every year. From 1st April 2023, low carbon heating systems that are commissioned by an installer will be eligible for funding under the scheme. However, applications and payments for the scheme can only be made from 23rd May 2023 or later.
To be eligible for funding under the scheme, the new heating system must meet certain technical standards and be capable of providing both space heating and hot water for the entire property. Your installer can advise you on the technical standards that your new heating system must meet, such as minimum efficiency requirements.
How can I access the scheme?
Under the Boiler Upgrade Scheme, the responsibility for applying for the grant lies with the installer.
As an installer-led scheme, the installer will handle the grant application on your behalf, and the value of the grant will be deducted from the final amount you are required to pay. To ensure that you are getting the best value for your money, it is advisable to obtain quotes from multiple installers before deciding on one. By doing so, you can compare the prices and services offered by different installers, enabling you to make an informed decision that best suits your needs and budget.
How much funding is available and what is covered?
The Boiler Upgrade Scheme covers three low carbon heating systems:
- Air source heat pump: £5,000 off cost and installation.
- Biomass boiler: £5,000 off cost and installation*.
- Ground source heat pump: £6,000 off cost and installation.
Am I eligible for the boiler upgrade scheme?
To be eligible for a grant under the boiler upgrade scheme, there are certain requirements that must be met. Firstly, you must be the owner of the property for which you are applying, whether it be a business property, a second home, or a rental property. Additionally, you must have installed or plan to install your new heating system on or after 1 April 2022, and it must be a replacement for fossil fuel heating systems such as oil, gas, or electric. Even if you have previously received funding to make your property more energy efficient, you are still eligible for the grant.
To determine if your property is eligible for the grant, it must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. If your property has recommendations for loft or cavity wall insulation, you should find out what to do next. If you are uncertain whether your property is suitable for a low carbon heating system, it is recommended to speak with an MCS certified installer who can advise you on your options.
For those interested in a biomass boiler, there are additional requirements that must be met. Your property must be off the gas grid, and it must be located in a rural area. Your boiler must also have an emissions certificate demonstrating that polluting emissions are minimized. It is important to note that you cannot receive a grant to install a biomass boiler in a self-build property.
There are certain properties that are not eligible for the grant, including most new build properties, social housing, and properties that have already received government funding or support for a heat pump or biomass boiler. If you own a new build property that the developer is still building, it is not eligible for the grant. However, if you move into a finished new build
The scheme this year
The government’s Boiler Upgrade Scheme (BUS) has failed to disburse millions of pounds, according to official records. Out of the £150 million budgeted for the scheme’s implementation in 2020, more than £95 million remains unspent. The BUS was initiated to support households in replacing outdated and inefficient boilers with energy-efficient models as part of the government’s commitment to carbon reduction and energy efficiency across the UK.
Despite the scheme’s noble objective, it has not been as successful as projected. The latest data reveal that only approximately £55 million has been claimed by households, a fraction of the allocated £150 million. Ofgem, the regulatory body, received 14,302 voucher applications, with 10,756 BUS vouchers worth £54.3 million issued to date.
Energy Minister Graham Stuart recently stated that unspent funds for the BUS, which ends on 31st March this year, will not be carried forward to next year.