What exactly is a heat pump grant and how much is it?
This article covers everything you need to know.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government initiative designed to provide financial support for property owners in England and Wales, enabling the adoption of low-carbon heating technologies. This scheme plays a vital role in decarbonising homes and helping the UK achieve its net-zero emissions targets.
To help the UK meet its net-zero carbon emissions goals, the government is encouraging homeowners to replace traditional fossil fuel boilers with energy-efficient alternatives, such as heat pumps. The Boiler Upgrade Scheme BUS offers grants to make low-carbon heating installations more affordable by offsetting the higher upfront costs of systems like heat pumps.
The scheme, running until 2028, is supported by a £1.5 billion budget as part of a broader £4 billion strategy to reduce emissions. Additionally, installations of energy-saving materials, including heat pumps, benefit from 0% VAT until March 2027.
What are Low-Carbon Heating Technologies?
Low-carbon heating systems are designed to minimise environmental impact while efficiently heating your home. Common technologies include:
- Heat Pumps: These systems harness energy from natural resources like air, ground, or water to provide heating and hot water. They are highly efficient and suitable for a wide range of properties. Options include both Air Source Heat Pumps and Ground Source Heat Pumps.
- Biomass Boilers: These boilers use renewable energy by burning organic materials such as wood pellets or logs, offering a sustainable alternative for off-grid properties.
How Does the Boiler Upgrade Scheme Work?
The scheme is installer-led, meaning your accredited installer applies for a grant voucher on your behalf. After your low-carbon heating system is installed, the grant amount is deducted from the upfront cost, making it more accessible for homeowners.
Here’s how it works:
- Consultation: An accredited installer assesses your property and advises on suitable systems.
- Application: The installer applies for the BUS grant on your behalf through Ofgem, the scheme administrator.
- Installation: The grant amount is discounted from the total installation cost.
This streamlined process ensures that switching from fossil fuel boilers to greener alternatives is simpler and more affordable.
What Funding is Available?
The Boiler Upgrade Scheme provides the following grants to eligible property owners:
- £7,500 for installing an air source heat pump.
- £7,500 for installing a ground source or water source heat pump.
- £5,000 for installing a biomass boiler (only for properties off the gas grid).
These grants significantly reduce the cost of adopting low-carbon heating systems. Keep in mind:
- Biomass boilers are eligible only for rural, off-grid properties.
- Only accredited Microgeneration Certification Scheme (MCS) installers can apply for these grants.
Who Can Apply for the Boiler Upgrade Scheme?
In order to qualify, applicants must meet the following criteria:
Property Criteria:
- The property must be located in England or Wales.
- Owners of domestic and small non-domestic properties are eligible.
- The property must have an Energy Performance Certificate (EPC) issued within the last 10 years. Exceptions apply for custom-build properties.
Technology Criteria:
- The heating system must fully replace an existing fossil fuel system (e.g., oil, gas, or direct electric heating).
- The installation must meet the full heating and hot water needs of the property.
- Eligible systems include heat pumps with a capacity of up to 45kW and shared ground loops up to 300kW for ground source systems.
- Systems must not have been installed or commissioned within the past 120 days.
Note: Hybrid systems combining fossil fuels with heat pumps are not eligible unless the heat pump meets 100% of the heating and hot water requirements.
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