Boiler Upgrade Scheme (BUS)

What is the Boiler Upgrade Scheme (BUS)

From the 1st of April 2022, the governments new scheme encourages householders to switch to low-carbon heating systems, and will offer up to £6000 towards the cost of this upgrade. The overall aim of the scheme is to change the way we, as a country, heat our homes. It is all part of the plan to help meet the UK’s net zero carbon emissions target by 2050. 

The Boiler Upgrade Scheme (BUS) aims to incentivise and increase the deployment of
low carbon heating by providing targeted support to the supply chain.

The BUS is an installer-led scheme which provides upfront capital grants to support the
installation of heat pumps and, in limited circumstances, biomass boilers in domestic and non-domestic buildings in England and Wales. Grants of £5000 are available for air source heat pumps (ASHPs) and biomass boilers, and grants of £6000 are available for ground source heat pumps (GSHPs). The scheme has a committed budget of £450 million over three years from 2022-2025, with an annual budget allocation of £150 million.

In addition, between 1 April 2022 and 31 March 2027, there is a zero rate of VAT1 on
the installation of energy-saving materials including heat pumps and biomass boilers. This is another measure intended to incentivise the take up of energy saving materials in line with the government’s net zero objectives.

Now has never been a better time to start your Renewable journey!

For further information on the BUS voucher visit Ofgem: https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/property-owners

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Who is Eligible for the Scheme?

If you are a homeowner, a small landlord and/or a private landlord you should be eligible to apply for this grant. All applicants must have a valid Energy Performance Certificate (EPC) – typically one which has been issued in the last 10 years – with no outstanding recommendations for loft or cavity wall insulation.

However, our understanding is that applications may still be made by homeowners with outstanding recommendations for loft or cavity wall insulation, providing it is evidenced through a newly generated EPC at the voucher redemption stage that the installation of these types of insulation has been carried out during the voucher validity period.

To find out if you have a valid EPC, follow this link to the GOV.UK website: https://www.gov.uk/find-energy-certificate

How Will I Apply for this Scheme?

Should you decide to install a heat pump to replace your boiler then the BUS scheme require your installer to be part of the Microgeneration Certification Scheme (MCS) as an accredited installers of heat pumps or biomass boilers.

To receive a grant payment, installers (such as Radiant Installations LTD) will need to submit two applications on your behalf – a BUS voucher application and a redemption application. If the BUS voucher application meets all the eligibility criteria and Ofgem receive confirmation of consent from the property owner, Ofgem will issue a BUS voucher, setting out key information such as the validity period. The BUS voucher will then need to be redeemed following the commissioning of the plant.

Benefits to You:
  • Your installer will receive the voucher once the system has been commissioned and the invoice will be in full minus the voucher cost. Please note that you will be responsible for the full payment until the voucher has been paid and remain responsible should you not qualify or the terms of the scheme are breached and the payment is claw backed.
  • Thankfully, you don’t have to make a complicated online application with this scheme – all the hard work is left to the installer!
  • Unlike costly fossil fuels, which are dwindling fast, renewable energy is secure, readily available and effectively infinite.
  • Renewable heating systems offer a cost-effective, reliable and energy-efficient way to help us reduce our carbon footprint, and could also deliver long-term fuel savings.

BUS Video

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