The usage of gas to heat our homes accounts for around 14 percent of total carbon emissions in the United Kingdom. As a result, as part of its efforts to achieve net zero emissions by 2050, the government has launched a Boiler Upgrade Scheme (BUS). A payment towards the cost of installing a heat pump will be provided, and when paired with the recently announced reduction in VAT on clean technology, the plan will encourage more individuals to switch from fossil fuels to renewable energy.
It is projected that the rising demand for cleaner heating would eventually drive costs down to the point where they are as expensive to purchase and operate as gas boilers now are. This is similar to the drop in cost of technology such as solar panels. The Boiler Upgrade Scheme, as well as other initiatives such as the VAT reduction for heat pumps announced in the Spring Statement of 2022, will aid in the acceleration of this process and the uptake of heat pumps.
What is the Boiler Upgrade Scheme and how does it work?
Approximately £450 million has been allocated to the Boiler Upgrade Scheme, which provides grants of £5,000 for the installation of air source heat pumps and £6,000 for the installation of ground source heat pumps.
The usual cost of an air source heat pump is between £8,000 and £10,000. As a result, the grant will only cover a portion of the cost, with homeowners responsible for the remainder. Because air source heat pumps are better suited for the vast majority of houses, the grant amount for air source heat pumps is correspondingly larger in relation to the cost of the heat pump.
The initiative, which operates on a first-come, first-served basis, will be in place for three years and has the goal of assisting around 90,000 families with the installation of heat pump systems. Even though this is a positive step forward, Good Energy and our partners in the Electrify Heat campaign are urging the government to raise the bar even higher so that we can achieve the government’s aim of 600,000 heat pump installations by 2028 as soon as possible.
What method is used to distribute the grants?
The first stage, if you decide to install a heat pump, is to get in touch with the installer, who will then submit an application to Ofgem on your behalf for a voucher to cover the cost of the grant. An email will be sent to you, in which you will be asked to grant approval on the government’s website.
Once the installation is complete, the installer will get in touch with Ofgem once again in order to redeem the gift certificate. The coupons that have been used are sent directly to the installer.
Validity: Coupons for air source heat pumps and biomass boilers are good for three months, whereas vouchers for ground source heat pump systems are valid for six months.
Dates that are important
The first day of April
A grant will be awarded to qualified low-carbon heating systems that are installed and operational on or after this date.
11th of April
Installers will be able to open an account with the scheme as of this date. It will no longer be necessary for installers to reapply once they have a verified account.
23rd of May
Installers will be able to submit grant voucher applications starting on this date.
Who is eligible to participate in the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is perfect for households in England and Wales who want to reduce their carbon emissions while also switching to more environmentally friendly sources of heating and cooling. Individuals who live in well-insulated homes but whose boilers are old or inefficient would profit the most from this initiative.
The grant will be available for air source or ground source heat pumps (as well as biomass boilers in certain situations) with a capacity of up to 45 kilowatt hours. Any systems installed by MCS certified installers after the 1st April 2022 and commissioned after that date will be eligible.
How to prepare your house for a heat pump installation
Another condition for being eligible for a heat pump is having a valid EPC certificate that does not include any suggestions for loft or cavity insulation installation. However, if the insulation is placed before the grant voucher is spent, an exception may be granted.
In order to maximise the effectiveness of any heating system, it is necessary to have a well-insulated house, since this decreases the amount of heat lost via the walls or the roofing material.
How Elite Group Can Help You!
If you are interested in applying for the £5,000 funding towards making your home more energy efficient, you can apply with Elite Group. You can also cover any additional costs outside of the £5,000 grant with 0% APR finance!
If you are a homeowner in the North East, give us a call on 01325 466016