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The Boiler Upgrade Scheme
(BUS) 2022 Everything You Need to Know

Everything you need to know about the Boiler Upgrade Scheme.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is the successor to the RHI scheme, which ended 31st March 2022. This scheme was created to help the decarbonisation of building stock in the UK, in line with the Energy Act 2008, and is set to run from 2022 - 2028.

BUS provides upfront grants for the installation of heat pumps (and biomass boilers in some situations) for both dwellings and non-domestic properties in England and Wales

Available grant options

  • £7,500 off of the cost and installation of an air source heat pump; or
  • £5,000 off the cost and installation of a biomass boiler (please note: this is only available to rural location properties that are not connected to the gas grid); or
  • £7,500 off the cost and installation of a ground source heat pump.

When did the Boiler Upgrade Scheme Start?

The Boiler Upgrade Scheme started taking applications from May 2022 (although low carbon heating systems commissioned from April 2022 may also be entitled to support).

In October 2023 the amount that you could get towards a heat pump went up from £5,000-£6,000 to £7,500.

Applications from before 23rd October 2023 where the heat pumps are not yet installed may be able to cancel their grant and reapply for the larger amount.

Who is Eligible for the Boiler Upgrade Scheme?

Property owners of buildings that meet the following criteria may be eligible:

  • The property is in England or Wales
  • The property is a dwelling OR small non-domestic
  • The property has an installation capacity up to 45kWth
  • The property has a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (unless there is a valid insulation exemption)

When you’re collecting quotes from installers, they will let you know if the property is not suitable for a low carbon heating system.

Can I use the grant for a new build property?

New build properties are not eligible unless you are building your own home.

Can I use the grant to upgrade an existing low carbon heating system?

No. The Boiler Replacement Scheme is only for replacing fossil fuel systems like oil, gas or direct electric.

Can I claim the grant if I’ve received other funding?

Yes! You can still apply for BUS if you’ve received separate funding for different energy efficiency upgrades like glazing, doors and insulation.

How to Apply for the Boiler Upgrade Scheme?

1. To start the process, you will need to get quotes from MCS accredited installers for the low carbon heating system you want.
  a. It’s recommended that you get multiple quotes to ensure that you’re getting the best price.
  b. To find a MCS installer in your area you can use the Find a Contractor tool.

2. The installer will advise whether an installation is:
  a. Suitable for your property; and
  b. Eligible for a grant.

3. You must agree on a quote for the installation.

4. The installer will apply for the grant on your behalf.

5. Ofgem will contact you to confirm that the installer is acting on your behalf.

The value of the grant, which is either £5000 or £6000 depending on the low carbon heating system chosen, will be deducted from the price you pay.

How Does the Scheme Work for Installers?

MCS installers must apply through Ofgem to be a BUS installer, which they can do now. To do this a person who has legal authority to act on behalf of the business and agrees to be their representative for the scheme must create an account following Ofgem's guidance.

The representative must be a company director or secretary listed on Companies House, if the business is a limited company. Sole traders will not be on Companies House but will still be required to verify their identity. Five extra users will be allowed access to the account.

After completing the BUS installer account form, the representative must email this along with a valid photo ID, proof of address, and business bank statements from the last 3 months to BUS.accountcreation@ofgem.gov.uk

Ofgem will run verification checks and, if approved, email the representative with the account and account ID.

Once approved and the scheme has begun (on 23rd May 2022), installers will be required:

  • To advise customers whether their property is suitable for a low carbon heating system;
  • Quote potential customers for the system and installation;
  • Advise the customers whether the installation is eligible for a grant;
  • Once the quote has been agreed, apply for the grant on behalf of the customer;
  • Carry out the work.
  • Redeem the BUS vouchers, this must be done after the plant (system) is commissioned but before the voucher expires.

What is Meant By "Low Carbon Heating Systems"?

Low Carbon Heating Systems are systems used to heat a property by generating heat via renewable sources, like the air, ground or biomass.

For example, heat pumps absorb heat from a source (air or ground) and transfer it to a fluid, which is then compressed to increase the temperature, the heat is then transferred from the fluid to water and used to heat the property.

As well as having been installed on or after 1st April 2022, heat pumps and biomass boilers must meet strict requirements to be eligible for the BUS grant.

While biomass boilers are an option for the BUS grants, it’s important to note that these are only available for properties in rural locations that are not connected to the gas grid.

Who is Administrating the Boiler Upgrade Scheme?

The Department for Business Energy and Industry Strategy (BEIS) is responsible for the scheme policy and legislation, and appointed Ofgem as the administrators of the scheme. As such, installers will be required to create their BUS account through them, grant applications will be via Ofgem and it is Ofgem who will be in touch with customers to confirm that installers are applying on their behalf.

Should I Upgrade My Boiler?

If eligible for BUS and the property is suitable for a low carbon heating system, then there are a few benefits that come from upgrading your boiler:

Key Terms

Installers - In this article and the BUS legislation, installers refer to people or companies that are accredited by MCS.

Low carbon heating systems - These are heating systems such as air/ground source heat pumps, biomass boilers, etc. that use renewable sources to generate heat for the building.

BUS - Boiler Upgrade Scheme.

MCS - Microgeneration Certification Scheme.

Plant - When plant is referred to in the BUS legislation, it means any equipment, apparatus or appliance;

Need an EPC to become eligible for the Boiler Upgrade Scheme? Request your free quote now.

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