The Boiler Upgrade Scheme (BUS) is a UK government grant designed to help households move away from fossil-fuel heating, such as gas and oil boilers, and towards low-carbon alternatives such as heat pumps.
Below, we explain how the scheme works today, who is eligible, and what it does, based on the latest policy position.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme forms part of the UK’s wider plan to reduce carbon emissions from homes, improve energy efficiency, and lower long-term heating costs.
The scheme is part of a broader £15bn Warm Homes Plan aiming to upgrade millions of homes and is expected to continue into the late 2020s as part of this programme.
It provides an upfront grant of £7,500 towards the cost and installation of a new heat pump in an existing home.
Rather than being paid directly to homeowners, the grant is claimed by an MCS-certified installer and deducted from the total cost of the installation.
Homeowner eligibility
To qualify for the Boiler Upgrade Scheme grant the following criteria must be met:
- In most cases, you must have a valid Energy Performance Certificate (EPC) – unless exempt. These are valid up to ten years from the date of issue. If you don’t have one, you can find an accredited EPC assessor on the GOV.UK website, who can carry out an assessment of your property and issue a modern, digital EPC.
- You must be replacing an existing fossil fuel heating system, such as a gas, oil or LPG boiler. In some cases, direct electric heating systems (such as storage heating) may also be eligible.
- Your installer must be Microgeneration Certification Scheme (MCS) certified.
If you have a self-build property, it’s eligible as long as you or the original owner built it or paid a builder to construct it. It must also never have been owned by a business or organisation.
New-build properties where the developer is still building aren’t eligible, but if you move into a completed new-build with a gas central heating system, for example, you may be able to get a grant under the BUS.
Products supported by the Boiler Upgrade Scheme
The Boiler Upgrade Scheme supports the installation of low-carbon heating systems designed to replace fossil fuel boilers as the primary source of heating and hot water.
Alpha is a keen advocate for the transition to lower-carbon heating and in conjunction with parent company, Immergas, continues to develop products and solutions that align with current standards while meeting real household needs.
For example, the Alpha Hydro and Magis M air source heat pump ranges are both eligible under the scheme. They are supplied with the latest in control technology to keep the system operating at its most efficient and effective.
Working with your installer
Installers play an important role in delivering the Boiler Upgrade Scheme, so it’s important to work closely with them to make the best decisions for your home. They will:
- Assess your property and confirm eligibility
- Design the appropriate heat pump system
- Provide you with a quote and help you understand costs
- Apply for the grant before installation
The grant amount is deducted directly from the installation cost, so you pay only the balance. It’s important to work with an installer experienced with the BUS process and with heat pump system design to ensure you get the best outcome for your home.
There are some good reasons to consider this option now. Not least, the fluctuations in gas and oil prices we’ve experienced in the past few years are likely to continue as the global trend toward renewable energy generation continues.
In the UK, the government has stated its intention to change the energy pricing system to reduce electricity prices, reflecting our increased use of wind generation and nuclear energy*. This means that gas and oil central heating are likely to become rising costs for households over time.
With major changes ahead for the UK’s home heating market, householders are faced with important decisions. With the Boiler Upgrade Scheme providing significant financial support, now could be a great time to switch to a modern heat pump system.
* UK launches biggest electricity market reform in a generation
** The BUS is operating across England and Wales. Scotland is operating similar scheme, known as the Home Energy Scotland Grant and Loan scheme. Details on current grants related to home heating in Northern Ireland can be found through the Northern Ireland Sustainable Energy Programme.