The UK Boiler Upgrade Scheme

BUS grant image

Heating Up for the Future: Navigating the UK Boiler Upgrade Scheme

The UK government is on a mission to decarbonise heat in buildings, and the Boiler Upgrade Scheme (BUS) is a key weapon in this fight. Launched in May 2022, the BUS offers upfront grants to incentivise homeowners and businesses in England and Wales to ditch their old fossil fuel boilers and embrace cleaner alternatives like heat pumps and biomass boilers. But with any government scheme, there are rules and regulations to navigate. This guide will equip you with the knowledge to determine your eligibility, understand the key features of the BUS, and navigate its core rules.

Why Upgrade Your Boiler?

Traditional gas and oil boilers contribute significantly to the UK’s carbon footprint. Replacing them with heat pumps, which extract heat from the air or ground, or biomass boilers, which burn sustainable materials like wood pellets, can significantly reduce emissions. This not only benefits the environment, but also lowers your energy bills and future-proofs your home as the UK moves towards a low-carbon future.

Who’s Eligible?

The BUS is open to homeowners and some non-domestic properties in England and Wales. Here’s a breakdown of eligibility:

Homes: Detached houses, semi-detached houses, bungalows, and flats (where the heating system is separately metered) are all eligible. There are no restrictions based on property size or value.
Non-domestic: The scheme applies to small and medium-sized enterprises (SMEs) with premises under 45kW thermal capacity. This could include shops, offices, and some agricultural buildings.

However, a few key exclusions apply:

Properties already heated by low-carbon systems like heat pumps or district heating are ineligible.
The scheme is not available in Scotland or Northern Ireland, which have their own energy efficiency programs.

Types of Eligible Boilers

The BUS supports two main low-carbon heating technologies:

Air Source Heat Pumps (ASHPs): These versatile pumps extract heat from the outside air, even at low temperatures. They offer a good balance of efficiency and affordability.
Ground Source Heat Pumps (GSHPs): These systems utilise the constant temperature of the ground to provide highly efficient heating. However, installation costs are generally higher than ASHPs.
Biomass Boilers: Biomass boilers burn wood pellets or other biofuels, offering a lower-carbon alternative to fossil fuels. However, fuel availability and storage considerations need to be factored in.

The BUS offers flat-rate grants, regardless of the boiler capacity (up to a maximum of 45kWth, except for shared ground loop systems). Here’s the breakdown:

£7,500: Grant for ASHPs and GSHPs
£5,000: Grant for Biomass boilers. Additional rules apply, detailed below.

These grants can significantly reduce the upfront cost of installing a new low-carbon heating system, making them a more attractive option for many homeowners and businesses.

Key BUS Rules:

Boiler Type: Only new installations of ASHPs, GSHPs, or biomass boilers qualify for the grant. The replaced boiler must be permanently removed and disposed of correctly.
Installer Accreditation: The installer must be registered with the Microgeneration Certification Scheme (MCS) and be qualified to install your chosen low-carbon boiler type.
Property Eligibility: The property must have a permanent heating system fuelled by fossil fuels or electricity (excluding heat pumps).
Additional rules for Biomass only: Your property has to be rated lower than C1 on the rural index here.
Additional rules for Biomass only: The property is not and has never been on the natural gas grid.
Grant Application: The installer, not the homeowner, applies for the grant on your behalf after completing the installation. However, it’s important to be aware of the scheme’s deadlines.
Grant Deadline: The scheme is currently scheduled to close for new applications on December 31st, 2024.

Beyond the Grant: Additional Considerations

While the BUS grant can significantly reduce the upfront cost, there are other factors to consider:

Running Costs: Heat pumps generally have lower running costs than traditional boilers, especially when paired with good insulation. Biomass boilers can vary depending on fuel prices.
Maintenance: Both heat pumps and biomass boilers require regular maintenance, which can add to the overall cost.
Property Suitability: ASHPs may not be suitable for all property types, particularly those with poor insulation. GSHPs require space for underground ground loops, which might not be feasible for all properties.

Taking the Next Step

If you’re considering replacing your boiler with a low-carbon alternative, the BUS can make a significant financial difference. Here’s how to get started:

Check Eligibility: Use the online checker on the GOV.UK website to confirm your property’s eligibility https://www.gov.uk/apply-boiler-upgrade-scheme.
Research Options: Explore the different types of low-carbon boilers and their suitability for your property. Resources like the Energy Saving Trust (https://energysavingtrust.org.uk/) offer helpful guides and comparisons.
Find an MCS Installer: Use the MCS website to find qualified installers in your area who can assess your property, recommend a suitable low-carbon boiler, and handle the BUS grant application process for you https://www.mcscertified.com/.
Get Quotes: Obtain quotes from several MCS installers to compare prices and ensure they are familiar with the BUS scheme. Discuss your specific needs and ask about any additional costs associated with installation or maintenance.
Make a Decision: Once you have a clear understanding of the options and costs, choose the installer and boiler type that best suits your needs and budget. Remember, the BUS grant decision ultimately rests with Ofgem, but a qualified MCS installer will guide you through the application process and ensure it meets all the scheme’s requirements.

By taking these steps, you can use the Boiler Upgrade Scheme to make a smooth transition to a more sustainable and cost-effective heating system for your home or business. Remember, the scheme is currently scheduled to close for new applications on December 31st, 2024, so don’t delay exploring this opportunity to upgrade your boiler and contribute to a greener future.