The Boiler Upgrade Scheme (BUS)

The new UK government-run scheme that aims to help householders transition to low carbon heating systems for heating their homes. The scheme will come into effect from April 2022 and is expected to replace the Renewable Heat Incentive (RHI) when it ends in March 2022.

The Government aim to change the way we heat our homes in order to reduce carbon emissions emitted by houses that are still dependent on fossil fuels and enable the phasing out of fossil fuels in the coming years.

The scheme is set to run for 3 years starting 1st April 2022, and the government has put aside a budget of £450 million under this scheme. The scheme is expected to run on a first-come, first-served basis.

Applications

We understand that the application process will be similar to the Green Homes Grant, where applicants will apply for the improvements themselves and then redeem a voucher which will be led by the installer.

Vouchers will be valid for 3 months for air source heat pumps and 6 months for ground source heat pumps.

Eligibility Criteria

The eligibility criteria for BUS is similar to that of Domestic RHI.

• The property needs a valid Energy Performance Certificate (EPC) that has been issued within the last ten years.
• To be eligible for the grant, there must be no recommendations on the valid EPC for loft and cavity wall insulation. There are exemptions to this requirement in case it is a government-listed building or is located in a conservation area.
• In order to be eligible for the scheme, a property must either be an existing building, custom-made or a self-build one.
• Homes are required to get their needs assessed and provide at least one quote from a certified
•  installer in order to qualify for the grant. The responsibility of applying for the voucher lies on the householder whereas the installer will have the lead role in redeeming the voucher. It is also important that the installers are MCS certified.

Boiler Upgrade Scheme vs Domestic RHI

One of the key differences is that the Boiler Upgrade Scheme provides vouchers that could cover upfront costs of up to £5,000 for air source heat pumps and up to £6,000 for ground source heat pumps, while from the RHI you earn annual payments for seven years based on your heat demand annually.

The Heating Technologies Included in BUS

You can apply for the grant if you are installing one of the following technologies:

• Air source heat pumps
• Ground source heat pumps
• Water source heat pumps
• Biomass boilers  – if heat pumps are not suitable for your property.

Further details on this scheme are due to be announced by the Government shortly.

For more information, please feel free to contact the office.