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The Boiler Upgrade Scheme: Explained

Written by Fornax Energy | March 7, 2024

The below article has been updated to reflect Government changes to the Boiler Upgrade Scheme on 14 March 2024.

Unlocking savings and sustainability

The Boiler Upgrade Scheme (BUS) is a government-backed program designed to encourage property owners to transition to more sustainable heating solutions. It offers financial incentives to help offset the costs of installing air source heat pumps, ground source heat pumps, and biomass boilers.

Broad eligibility criteria

Installer Certification: To qualify for the BUS, your heating system must be installed by a Microgeneration Certification Scheme (MCS)-certified installer. This certification ensures technical competence and adherence to the right standards.

Property Type: The scheme is open to both domestic and non-domestic properties in England and Wales. However, new build properties are generally not eligible, with some exceptions.

Energy Performance Certificate (EPC): Your property must have a valid EPC issued within the last 10 years. Previously this EPC had to have no recommendations for loft or cavity wall insulation, however the Government has announced this requirement will now be dropped (effective date still to be confirmed by the Government) - so you won't need to install any installation to get the BUS grant anymore. 

How it works

1.Installer-Led Process: The BUS simplifies the transition to eco-friendly heating by putting installers in the driver's seat. Your chosen MCS-certified installer will handle most aspects of the process, making it hassle-free for you.

2. Grant Amounts: The BUS provides generous grants to offset the cost of eco-friendly heating systems. As of October 23, 2023, the grant amounts are:

  • Air Source Heat Pumps and Ground Source Heat Pumps: A substantial £7,500 grant.

  • Biomass Boilers: A noteworthy £5,000 grant.

3. Zero VAT on Installation: From April 1, 2022, to March 31, 2027, there's 0% VAT on the installation of energy-saving materials, including heat pumps and biomass boilers. This means you can make eco-conscious choices without incurring additional tax expenses.

4. Consent and Multiple Applications: After your installer applies on your behalf, you'll receive a consent request. Confirming consent doesn't bind you to a specific installer but assures the government of your authorization. If multiple installers apply, you can only confirm consent for one of them.

5. Completion of the Project: Your installer has a specific timeframe to complete the installation. Depending on your property, insulation may be required before the heating system's installation.

6. Product Eligibility: The BUS grants apply to specific heating technologies, including air source heat pumps, ground source heat pumps, and biomass boilers. Hybrid heat pump systems do not qualify for the scheme. 

Make the switch

The Boiler Upgrade Scheme (BUS) offers homeowners an opportunity to transition to sustainable heating solutions while enjoying substantial financial incentives. With grants, VAT savings, and an installer-led process, it's now easier and more affordable to make the switch to eco-friendly heating.

Contact Fornax to explore the benefits of the BUS for your home and the environment and embrace sustainable living today!