Biomass Boiler and Heat Pump Upgrade Scheme

The government will provide grants to encourage property owners to install low carbon heating systems such as heat pumps, through the Boiler Upgrade Scheme (BUS). These grants will help property owners overcome the upfront cost of low carbon heating technologies.

The scheme will be open to domestic and small non-domestic properties in England and Wales. It will run from 2022 to 2025.

1 April 2022 - Low carbon heating systems that are commissioned on or after this date will be entitled to support under the scheme. (Commissioning is the completion of installation and set up of the system).

11 April 2022 - Installers are able to open an account for the scheme with Ofgem, the scheme administrator.

23 May 2022 - The scheme opens for grant applications and payments.

What you’ll get

You can get:

• £5,000 off the cost and installation of an air source heat pump

• £5,000 off the cost and installation of a biomass boiler

• £6,000 off the cost and installation of a ground source heat pump

The grant will only cover biomass boilers in rural locations and in properties that are not connected to the gas grid.

Eligibility

You may be eligible if you:

• live in England or Wales

• own your property (whether this is a home or a small non-domestic property)

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The property will need to have:

• an installation capacity up to 45kWth (this covers most homes)

• a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (unless you have an insulation exemption)

New build properties will not normally be eligible. The only exception is if you’re building your own home.

Your installer will advise whether a low carbon heating system is suitable for your property.

If you’re claiming other grants or funding

You can still apply if you’ve received separate funding for energy efficiency upgrades such as insulation, doors or windows.

If you’re replacing an existing low carbon heating system

Funding is not available for the replacement of existing low carbon heating systems. Only properties which are fully replacing existing fossil fuel systems (such as oil, gas or direct electric) are eligible for support.

How the scheme works

Your installer will apply for the grant on your behalf. The value of the grant will be discounted off the price you pay.

HMRC recommends you get quotes from more than one installer to make sure you’re getting the best value for money.

1. You find an MCS certified installer in your area that is able to carry out the work. (The MCS quality assurance scheme ensures that installers are competent, and the products they use meet the correct standards.)

2. The installer advises you on whether an installation is eligible for a grant.

3. You agree a quote for the installation.

4. The installer applies for the grant.

5. You confirm that the installer is acting on your behalf when you’re contacted by Ofgem.

To be eligible for the scheme, the commissioning date of the heating system must be on or after 1 April 2022.