As the UK sizes up its net-zero aspirations, making our households energy efficient is more important than ever. A huge part of this is improving the way we generate heat in our homes, with the corresponding emissions responsible for around 14% of the UK’s greenhouse gases.
One part of the solution is replacing traditional boilers with heat-pumps. However, they can be expensive to install, so the government introduced the boiler upgrade scheme. But what is it, and how does it work?
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The Boiler Upgrade Scheme (BUS) is a government initiative that launches in Spring 2022 with the objective of de-carbonising households and buildings across England and Wales. Eligible homes will be offered a grant to go towards the installation of a heat pump, which will replace old, inefficient gas boilers.
Heat-pumps are alternatives to boilers which transfer thermal heat between spaces. They are attached to the outside of homes which they pump heat into, either from the ground or air.
They are much more efficient than traditional boilers, and have been touted as absolutely vital to achieving carbon neutrality. According to the CCC (Climate Change Committee), 3.3 million homes will need them by 2030 to hit net-zero.
As well as improving your home’s eco-credentials,the improved efficiency makes heat-pumps a long-term financial investment. It’s estimated that swapping to a heat-pump can save the average household close to £3,000 over twenty years. So, if you can access the grant, it’s a no-brainer.
One roadblock to their adoption, however, is cost. Depending on which type you go for, they range from £6,000-£8,000 for an air source version, and £10,000-£ 18,000 for a ground source pump. This is where the government scheme comes in. However, successfully applying is easier said than done.
From April 1st, households will be able to apply for a grant of £5,000 for air source heat pumps, and £6,000 for ground source heat pumps. Successful applicants will have this taken off the cost of installation.
Unfortunately for those looking to upgrade, the amount of money allocated is relatively small, with only £450m being made available. While this might sound like a lot, it means that only 90,000 homes will get it over the next three years, with 30,000 spaces allocated each year.
Due to limited space, there is likely to be a large amount of competition and the scheme is being run on a first come first serve basis.
The scheme is open to:
The building you wish to upgrade must have also been issued with an EPC (Energy Performance Certificate) in the last ten years. The only time this won’t apply is if you have built your property yourself, as all custom-built properties need to follow eco-guidelines as standard.
To ensure that your EPC is sufficient to apply for the scheme, you also need to make sure your home is property insulated. If your EPC contains recommendations for further insulation, this needs to be completed before the heat pump is due to be installed. There are certain exemptions to this, however, such as if you live in a listed building.
Assuming all of these criteria are met, you will be able to apply. Unfortunately, the scheme is closed to residents of Scotland and Northern Ireland, as well as those in social housing or new-build properties.
Applications are open from the 1st of April 2022, and run on a first come first serve basis.
To register your interest, you’ll need to email Ofgem at [email protected], who will then forward your application. Should you be successful, you will be sent a voucher which will be eligible for 3-6 months, depending on the type of heat pump you have chosen. You can cash in your voucher once the installation has been completed.
If you’re unlucky enough to miss out, you’ll need to wait until next year when the government plans to open the scheme again to another 30,000 households.
The Green Homes Grant was a wider reaching programme, providing financial support for households wanting to improve the energy efficiency of their home. Applications for it are now closed, and it has been replaced by the Boiler Upgrade Scheme.
Government help doesn’t end here, however, and if you are from a low-income or vulnerable household, there is additional support available.