Policy Context & Overview
Short Answer: The Boiler Upgrade Scheme (BUS) provides capital grants of up to £7,500 to help property owners in England and Wales transition to low-carbon heating systems.
The Boiler Upgrade Scheme (BUS) is a cornerstone of the UK Government's strategy to decarbonize home heating and achieve its net-zero greenhouse gas emissions target by 2050. Heating in buildings accounts for approximately 14% of the UK's carbon emissions, primarily due to the widespread reliance on natural gas and heating oil. The scheme aims to make clean heating systems financially competitive with traditional fossil fuel boilers.
Subsidy Tiers & Financial Support
The scheme offers non-repayable capital grants that act as a direct discount on the purchase and installation of qualifying low-carbon heating systems:
| Technology Type | Grant Value | Maximum System Capacity |
|---|---|---|
| Air Source Heat Pump (ASHP) | £7,500 | Up to 45kWth |
| Ground Source Heat Pump (GSHP) | £7,500 | Up to 45kWth |
| Biomass Boiler | £5,000 | Up to 45kWth |
Note: The grant for air source and ground source heat pumps was increased from £5,000 and £6,000 respectively to £7,500 in October 2023 to accelerate adoption.
Eligibility & Property Requirements
To qualify for the Boiler Upgrade Scheme, applicants and properties must meet strict requirements:
- Location: The property must be located in England or Wales.
- Property Type: Eligible properties include private residential homes, small businesses, and custom-built self-build homes. Social housing and developer-led new builds do not qualify.
- Existing Heating System: The new low-carbon system must replace a fossil fuel heating system (such as oil, gas, or coal) or a conventional electric heating system.
- Insulation Requirements: The property must have a valid Energy Performance Certificate (EPC) issued within the last 10 years with no outstanding recommendations for loft or cavity wall insulation. If insulation is recommended, it must be installed prior to the heat pump commissioning.
- Installer Certification: The installation must be completed by an installer certified under the Microgeneration Certification Scheme (MCS).
Step-by-Step Application Guide
The application process is installer-led, reducing the administrative burden on the homeowner:
- Find an MCS Installer: Contact certified MCS installers to obtain quotes for an eligible heat pump or biomass system. It is recommended to get at least three quotes.
- Agree on Quote: Choose your preferred installer and sign the contract. The installer will determine the correct heat pump size and system configuration for your home.
- Installer Initiates Application: The installer applies for the BUS grant on your behalf via the Ofgem portal.
- Confirm Consent: You (the homeowner) will receive an email from Ofgem requesting your consent to act as the beneficiary of the grant.
- Installation & Payout: The installer completes the installation, registers it with MCS, and claims the £7,500 directly from Ofgem, deducting the grant value from your final invoice.
Frequently Asked Questions
- Q: Can I get the grant if I am building my own house?
- A: Yes. Custom-built self-build homes qualify, provided they are built for your own occupation and the heating system is installed while the property is being built.
- Q: Does the grant cover radiators and pipework?
- A: The grant is applied to the overall project invoice. If your property requires larger radiators or new pipework to work efficiently with a low-temperature heat pump, those costs are included in the overall invoice offset by the £7,500.