About the Boiler Upgrade Scheme
The RHI has been replaced by the Boiler Upgrade Scheme (BUS), which is a £450 million scheme that offers upfront capital grants to households and small businesses looking to install heat pumps and, in some limited cases, biomass boilers. The BUS scheme officially launched on the 23rd May and heat pump installations commissioned from 1st in April 2022 are eligible for their respective grant.
The scheme is expected to help install 90,000 heat pumps over three years.
Upfront Capital Grants
Under the scheme, homeowners will be able to claim up to £5,000 towards the installation of an air source heat pump. For ground source heat pumps, vouchers of up to £6,000 can be claimed. BUS vouchers will have validity periods of 3 months for air source and 6 months for ground source heat pumps.
The Application Process
The Boiler Upgrade Scheme will be installer led, meaning that you do not have to apply for the voucher yourself. Please see the step-by-step process for applying below:
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.) You can find NIBE Pro MCS certified installers near you here.
2. Your installer will advise you on whether an installation is eligible for a grant.
3. You agree a quote for the installation.
4. Your installer applies for the grant. You will likely need to assist the installer by sharing information and evidence on the property and chosen technology for confirmation of eligibility.
5. You confirm that the installer is acting on your behalf when you are contacted by Ofgem via the digital service.
More information about the application process has been published on Page 27 of Ofgem’s property owner guidance.
Who will be eligible for the Boiler Upgrade Scheme?
Installers - Must be MCS Certified
Location - Properties must be located in England or Wales
Type of building
• Domestic and small non-domestic buildings are eligible
• Social housing and new builds are not eligible
• ‘Self-builds’ are the only eligible new builds
Energy Performance Certificates
All properties must have an EPC with either:
• No recommendations to install loft or cavity wall insulation
• Or provide evidence of being exempt from insulation requirements
Previous heating system requirements
• The previous system must have been a fossil fuel powered heating system or electric system, excluding heat pumps
• All heat generating components must be replaced
• Air Source Heat Pumps
• Ground Source Heat Pumps
• Water Source Heat Pumps
• Ground Source Heat Pumps as part of a shared ground loop
• Biomass boilers
On or after 1st April 2022.
45 kWth total capacity limit, including for shared ground loop systems. This covers the vast majority of domestic and small non-domestic properties.
Heat pump or biomass boiler system requirements
Your installer will be able to advice you of which technology is most suitable for your home and help you to understand the eligibility criteria, including the technical eligibility criteria for the system.
Your NIBE Pro installer will advise whether a low carbon heating system is suitable for your property. Find your nearest NIBE Pro Installer here.
You can check your eligibility for the scheme here: Check if you may be eligible for the Boiler Upgrade Scheme - GOV.UK (www.gov.uk)
Zero VAT on heat pumps
The recently announced 0% VAT on the installation of energy saving materials including heat pumps and biomass boilers, further reduces the cost of installing these systems. This reduction takes effect from 1st April 2022, and will last for 5 years, meaning it will cover the entire period of the BUS. More information about how this is applied can be found here: Energy-saving materials and heating equipment (VAT Notice 708/6) - GOV.UK (www.gov.uk)
For general queries regarding the BUS, please email: BUS: firstname.lastname@example.org
For complaints regarding the BUS’ underlying policies, eligibility criteria, etc., please email: email@example.com
For complaints or recommendations regarding the scheme’s administration or concerns about how your application is being handled, please email: firstname.lastname@example.org