Boiler Upgrade Scheme (BUS)
Boiler Upgrade Scheme
The Department of Business, Energy and Industrial Strategy (now the Department for Energy Security and Net Zero) and Ofgem launched the Boiler Upgrade Scheme (BUS).
To apply for a Boiler Upgrade Scheme grant, all installers must be MCS certified and will need to set-up a Boiler Upgrade Scheme installer account to become a registered BUS installer. Applications can then be submitted to Ofgem, more information can be found at the bottom of this page.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme provides grants to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems including air source heat pumps (ASHP), ground source heat pumps (GSHP) and, in limited circumstances, biomass boilers.
What funding is available?
The Boiler Upgrade Scheme is set to provide £1.5 billion of support until 2028. This is limited to one grant per property.
The BUS allows consumers to receive a one-off grant payment of:
- £7,500 towards an air source heat pump (ASHP).
- £7,500 towards a ground source heat pump (GSHP), including water source heat pumps and those on shared ground loops.
- £5,000 towards a biomass boiler.
Please note: Biomass boilers are only eligible in properties in a rural location and not connected to the gas grid. Your boiler must also have an emissions certificate showing that polluting emissions are kept to a minimum. You cannot get a grant to install a biomass boiler in a self build property.
Contractors will be required to lead the voucher application on behalf of the consumer.
The Latest updates to the Boiler Upgrade Scheme
After a government consultation in order to encourage greater uptake of low-carbon heating systems and provide a simpler consumer offer, the following changes have been made to the Boiler Upgrade Scheme effective as of 8 May 2024.
- Retain the requirement for a valid Energy Performance Certificate (EPC) generated in the last 10 years but remove the requirement to have no outstanding recommendations for loft and cavity wall insulation on the EPC.
- Future-proof the regulations by differentiating grant levels for properties off the gas grid and self-build properties. The government do not intend to vary the grant levels for these properties when the regulations come into force but will be able to do so in future if necessary.
- Introduce biomass boilers with an integrated cooking function as newly eligible for support.
- Increase the threshold for shared ground loops for ground source heat pumps from 45kW to 300kW. The threshold for a single installation will remain at 45kW.
- Amend the approach to commissioning dates: an application won’t be eligible if made for a system which has been commissioned more than 120 days ahead of the application (previously any system installed after the scheme launch was eligible).
Eligibility
There are several ‘eligibility criteria’ to be met to benefit from the scheme. They will apply to the consumer, the heating system, the installer and the property.
You may be eligible for the grant if:
- You own your property.
- Your property is a home or small non-domestic building in England or Wales.
- The maximum installation capacity of the funded system is 45kW.
- Your low-carbon heating system was commissioned no more than 120 days prior to an application being properly made.
Properties not eligible for the grant are:
- Most new build properties.
- Social housing.
- A property that’s already been given government funding or support for a heat pump or biomass boiler.
- A property where you are replacing a low-carbon heating system.
New & self build properties
All new build properties that are still currently being built by a developer are not eligible for the Boiler Upgrade Scheme grant.
However, if you move into a finished new build home with a fossil fuel boiler, you may be able to get a grant for a heat pump under the scheme.
Boiler Upgrade Scheme Installers
To be eligible to provide the BUS grant all installers must be Microgeneration Certification Scheme (MCS) certified and a member of an applicable consumer code.
There are additional eligibility criteria and installers will work with consumers to ensure that the property and technology meet the full range of requirements for the scheme.
Applying and registering as an installer
As an installer, if you wish to submit applications for grants under the scheme, you will be required to create a BUS installer account with Ofgem.
You must submit a registration form directly to Ofgem in order to create your account. You can download the form from the Ofgem website here.
Ofgem has also published detailed guidance to help you through the process – here.
Ofgem have now launched their online voucher application portal. The portal will allow you to apply for vouchers quicker and easier online as well as track each application on a dedicated dashboard.
The application process for consumers
The key steps below highlight the process for applying for the grant and how Ofgem will process your application.
- Contact suitable MCS certified installers to get quotes for the work. We recommend you contact multiple installers to obtain quotes.
- Confirm you’re eligible (your installer will tell you).
- Agree a quote with your chosen installer. The value of the BUS grant should be deducted upfront as part of the quote.
- Your installer will then apply for the BUS grant on your behalf through the Ofgem website. They will redeem the voucher once the work has been completed.
What happens next
Ofgem will contact you to confirm that the installer is acting on your behalf. They might also contact you by phone or visit your property in order to check the installation. If anything is incorrect on the application details, or you have not agreed to an application, contact Ofgem.
Boiler Upgrade Scheme application tips
- Installers on the BUS must be MCS registered and a member of a relevant consumer code. Installers who are registered for the BUS can be identified using the MCS Find a contractor tool Some larger installers with nationwide coverage may not appear on a local search of the MCS tool but can be searched for by name to check if they are registered for BUS.
- You should seek out multiple quotes for installations ahead of contracting to ensure you are content with the cost of the work to be undertaken.
- Installers should be transparent about their costs in their quotation. This should include any fees for administration in relation to the BUS grant. Installers should not charge excessive fees for administration related to the BUS voucher application.
- You will benefit from a 0% rate of VAT on the purchase and installation of your low carbon heating system.
- Your installer should provide you with a performance estimate for your new system before agreeing the contract. They should also make you aware of any outstanding insultation recommendations on your EPC and any implications for your systems performance and energy bills.
- If you are a landlord you should make your tenants aware of the implications of the installation of a low carbon heating system for their energy bills.
- The value of the grant should be deducted upfront from your quote and the amount you pay for the installation.
- The full value of the BUS grant must be passed on to you without deduction by the installer. Whilst the BUS value should be deducted upfront from your quote If you have instead agreed that your installer will reimburse the grant amount they should do so in a timely manner once your voucher has been redeemed.
- If your installer requires a deposit, this should constitute a reasonable percentage of the estimated overall costs of the work. You should not be asked to pay more than 25% of the contract value as a deposit or advance payment under any circumstance.Your installer should provide you with a handover pack for your new heating system once it is installed.
- If you have problems with your installer, MCS can help you. Read their guidance on ‘What to do when things go wrong’
- To find out more about the actions you can take now to make your home more energy efficient visit energy efficient home You can also find out which of these actions might be suitable for your home try the Gov.uk checker tool
Key resources for installers and property owners
Here is a list of key resources for contractors by Ofgem:
- Installer guidance
- BUS account creation guidance
- Boiler Upgrade Scheme Regulations: approved standards
- Draft BUS regulations
- Product Eligibility List
Property owners should access the guidance by Ofgem.
For more in-depth information on guidance related to criteria and eligibility for the BUS, read our dedicated blog.
If you need further help, contact us.
Protecting quality
MCS is undertaking checks on heating system installations completed by MCS installers using a grant from the Boiler Upgrade Scheme. We will be contacting homeowners directly to capture information to carry out these checks.
Please let your customers know that we may contact them via boilerupgradescheme@mcscertified.com or 0333 103 8198. They should aim to respond within seven days of receiving our communication.
If you need further help, contact us.