Replacing RHI

Boiler Upgrade Grants to Replace the Renewable Heat Incentive

Boiler Upgrade Grants to Replace the Renewable Heat Incentive

From 31st of March 2022, the RHI scheme will be replaced by the Boiler Upgrade Scheme.

What is the RHI Scheme?

The Renewable Heat Incentive (RHI) is a government backed financial incentive scheme designed to encourage UK homes to swap to renewable heating systems. Under the RHI, heat pump system owners are rewarded on a quarterly basis for the renewable heat they generate over a seven-year period after the system has been installed.

Read everything you need to know about RHI

When does RHI end?

The domestic RHI scheme, which is open to UK households, will remain open to applicants until the end of March 2022.

Please note that NIBE cannot guarantee that your heat pump will be installed in time for the RHI deadline on 31st March 2022 and cannot be held responsible for possible delays in the delivery and installation process.

About the Boiler Upgrade Scheme

RHI will be replaced by the Boiler Upgrade Scheme (BUS), which is a newly announced £450 million scheme that will offer capital grants to households and small businesses looking to install heat pumps and, in some limited cases, biomass boilers. The BUS scheme is expected to start in April 2022.

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. This will be issued in a voucher system similar to how the Green Homes Grant scheme once operated.

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The Application Process

The Boiler Upgrade Scheme will comprise of a two-stage installer-led process.

Stage one will require basic information such as the installation postcode, technology type and customer contact details. Once the voucher is issued and the installation is complete, the second stage of voucher redemption and subsequent grant allocation is completed by the installer. At this stage, the installer will need to submit the MCS certificate, meaning all installers carrying out work under the scheme will need to be MCS certified and members of a Consumer Code. This will ensure customers are protected by a Trading Standards Institute Approved Code of Practice.

BUS vouchers will have validity periods of 3 months for air source and 6 months for ground source heat pumps.

Who will be eligible for the Boiler Upgrade Scheme?

Full eligibility requirements have not yet been announced but it is expected that the scheme will be open to:

  • All homeowners, small landlords and private landlords in England and Wales.
  • It will not be made available to social housing properties or new builds.
  • Generally, anyone replacing an existing fossil fuel heating system or direct electric system.

BUS eligibility is prohibited to properties that a) have previously received RHI, Green Homes Grant, HUG, or any other government funding, or b) have installations with a commissioning date prior to the 1st of April 2022 BUS launch date.