Boiler Upgrade Scheme

What is the Boiler Upgrade Scheme?

BUS is being introduced to incentivise the installation of Air Source Heat Pumps (ASHPs) in homes.

The government has budgeted £450m over the three-year life of the scheme. This would fund 90,000 ASHP installations (30,000 per year).

Grants of £5,000 will be available for ASHP and biomass boilers and grants of £6,000 will be available for Ground Source Heat Pumps (GSHPs). The grants will be available for eligible installations undertaken from April 2022.

BUS will only cover England and Wales.* It is not applicable to social housing and new builds.

For installations in Scotland there is an existing support scheme in place.**

Why has the scheme been developed?

With the energy transition and eventual move from gas boilers to alternatives, the government is offering grants to encourage private homeowners to consider having low carbon heating installed, which will help to grow deployment and support growth.

How does it work?

The grant will be sent via a voucher system. Microgeneration Certification Scheme (MCS) certified installers will need to apply to the Office of Gas and Electricity Markets (Ofgem) for a voucher on behalf of the property owner they’re carrying out the installation for. Once the ASHP has been installed, the installer will need to contact Ofgem to redeem the voucher and submit suitable evidence that the ASHP has been fitted correctly and meets all the criteria.

Eligible installations commissioned from 1st April 2022 may apply for BUS.

More guidance for Installers will follow from Ofgem in due course and we will keep you updated with everything you need to know.

* www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus
** www.homeenergyscotland.org/find-funding-grants-and-loans/interest-free-loans/overview