Boiler Upgrade Scheme

Thinking of upgrading to a heat pump?

Thanks to a government grant of £7,500, you could install a heat pump at a more affordable rate than ever. Keep reading to find out how.

Built to last. You can expect a heat pump to last for 20 years - longer than the average lifespan of a gas boiler

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Three times more efficient than a gas boiler

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Save 60%-75% on the installation cost

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Built to last. You can expect a heat pump to last for 20 years - longer than the average lifespan of a gas boiler • Three times more efficient than a gas boiler • Save 60%-75% on the installation cost •

What is the Boiler Upgrade Scheme?

The scheme is a government initiative, designed to replace traditional fossil fuel boilers with low carbon heating technology and support the UK’s transition to reach net zero emissions by 2050.​ It offers homeowners a grant to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.

Who can apply to the scheme?

  • Homeowners, landlords and owners of small business properties in England and Wales

  • Households with a valid EPC (generated in the last ten years)

  • Households replacing fossil fuel heating systems (oil, gas, electric or Liquefied Petroleum Gas)

  • Households in rural areas

Technologies and Funding Available

Replace your fossil fuel system with low-carbon heating system and receive £7,500 funding

Technologies and grants included in the scheme are:

  • Air source heat pumps - £7,500 grant

  • Ground source heat pumps - £7,500 grant

  • Biomass boilers - £5000 grant. Property must have no mains gas connection and located in a rural area. The biomass boiler must have an emissions certificate showing that pollution emissions are kept to a minimum.

How the Boiler Upgrade Scheme works:

To start, contact us and we will put you in touch with a local MCS certified installer to get a quote.

After you have agreed on a quote, the chosen installer of your heating system will apply for the grant/voucher, which is dealt with by Ofgem.

Our installers manage the process for you. Once Ofgem has approved the application and checked client consent, the grant is paid directly to the installer, reducing the overall installation cost.

It’s important to note that your installer must be MCS accredited and certified, and must commission and install the technology within 120 days of applying for the grant, or it will not be eligible. You can find guidance with this below.

What are the typical installation costs?

The typical cost of an ASHP (installed by Daikin) is £10,000 - £12,000.

With Boiler Upgrade Scheme funding, the install would cost approx:

We have gathered some reference costs from installers that we have partnered with, so you can estimate how much you would be spending to upgrade your system.

With BUS Funding:

Air Source

Heat Pump

£2,500-£4,500

The typical cost of a GSHP (installed by T4 Sustainability) is £13,000 - £16,000.

With Boiler Upgrade Scheme funding, the install would cost approx:

Ground Source

Heat Pump

£5,500-£8,500

Additional upgrade costs, as provided by Gov.uk, include:

  • Thermal storage, costing approx. £775 - £3,000

  • Radiators, costing approx. £125 - £225

FAQs

  • Most new build properties do not qualify, including a new build which the developer is still building

  • No, social housing tenants do not qualify.

     

  • No.

  • A valid EPC is required to apply for the scheme. The criteria has recently changed and there is no longer a requirement for insulation to be installed prior to the install of a heat pump. However, it is best practice to insulate the walls and roof before an ASHP is installed, because your heating system will work more efficiently.

  • No, the ASHP must be installed outside with space indoors for a hot water cylinder.

  • Yes, the grant will provide a saving on the install cost of approximately 60%-75% for an ASHP and 47%-53% for a GSHP.

  • The Renewable Heat Incentive offered tariff payments over seven years to financially reward households who use renewable energy to heat their homes.

    The scheme closed to new applications on March 2022 and the Boiler Upgrade Scheme was launched to replace the Domestic Renewable Heat Incentive. A key difference is that the BUS provides up to £7,500 upfront, while the RHI paid £7,000 over seven years in quarterly instalments.

  • If your installer has not fitted your heat pump, you can them to cancel the voucher and reapply for the higher amount.

  • The grant is not expected to cover the full cost, it is sufficient to cover the cost of the equipment and a small proportion of the labour.  

    The typical cost of installing heat pumps is: 

    ASHP: £10-£12,000  

    GSHP: £14-£16,000. 

    To pay between £2,500 to £4,000 for an ASHP is comparable to the cost of replacing a new gas boiler. 

  • The installer must be certified by the Microgeneration Certification Scheme (MCS) because only MCS certified installers can apply. The MCS is a nationally recognised standards organisation that assures the competence of installers and quality of products. You can find a local MCS certified installer here.

  • The grant can only be used to install a heat pump that can meet the space and hot water heating demands of the property.

    It must have a capacity of no more than 45kWth (kilowatt thermal) and a seasonal coefficient of performance (SCOP) of at least 2.8.

By applying for government grants to cut the installation costs of a heat pump, you can achieve cleaner, greener heating at a price that is comparable to replacing your traditional fossil fuel boiler.

If you are considering installing a green alternative to traditional heating, we are here to help. HEAT Hub can offer support by providing a free Home Energy Plan to Nottinghamshire and Derbyshire homeowners, determining the suitability of your home for a heat pump and how best to go about installation.

We can also offer unbiased guidance and support with installation by local certified experts. Get in touch with us below to start revitalising your home’s heating today.