What is the Boiler Upgrade Scheme (BUS)
From the first of April 2022, the government’s new scheme that will aim to encourage householders to switch to low-carbon heating systems, will offer up to £5000 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 £450m policy was confirmed in the Heat & Building Strategy, and the government has confirmed that the scheme will be a formal renaming of what was previously the Clean Heat Grant.
However, the government had pledged to install 600,000 heat pumps in homes per year by 2028, and there is uncertainty among experts and heat pump installers that the funding provided for the Boiler Upgrade Scheme will be enough to reach that target. At Radiant Heating we are hoping it is!
The Ground Source Heat Pump Association issues the following quote regarding the new scheme: -‘A grant of only £5,000 for an ASHP (or £6,000 for a GSHP) is too low to encourage homeowners to move to clean heating. The government needs to acknowledge that a homeowner who considers a clean heating mechanism is facing a private cost to provide a public benefit.’
They go on and say: ‘The Boiler Upgrade Scheme is only proposed to last for three years, and funding is limited to £450m. This lack of clarity and lack of ambition will provide no certainty for installers proposing to serve the market.’
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.
How Will I Apply for this Scheme?
If you decide to get a heat pump to replace your boiler then the scheme will need to be Microgeneration Certification Scheme (MCS) 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 – 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.
- You will receive Full Up-Front Payment instead of over a period of time unlike the RHI, where the you would have received payments every 3 months for 7 years.
- Thankfully, you don’t have to make complicated online application with this scheme.