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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

These include air source heat pumps, ground source heat pumps and, in limited circumstances, biomass boilers. The scheme opened for grant applications on 23 May 2022 and has £450m funding confirmed over 3 years. Replacing your current heating system with a heat pump will reduce your carbon footprint.

A heat pump takes heat at a low temperature from the air or ground, increases that heat to a higher temperature and transfers it into your home to provide heating and hot water. Heat pumps are much more efficient than traditional boilers.

Biomass boilers usually burn wood or wood pellets to deliver heating and hot water to your home.

You can find more information on low carbon heating technologies on the Energy Saving Trust site: https://energysavingtrust.org.uk/energy-at-home/%20heating-your-home/heat-pumps (opens new window)

A qualified installer will be able to recommend which technology is most suitable for your property. You will also benefit from a 0% rate of VAT on the purchase and installation of these technologies. 

Grant levels

  • Grants will reduce the upfront cost of installing a low carbon heating system.
  • £7,500 is available towards air source heat pumps and biomass boilers.
  • £7,500 is available towards ground source heat pumps.
  • We expect your installer to discount the value of the grant from the total cost paid by you and include this in their quote.

 

To make the application for the scheme as simple as possible, it will be led by your chosen installer, with an opportunity for you to give consent that you are happy to proceed with the application.

Finding an installer

Your chosen installer will need to be certified by the Microgeneration Certification Scheme (MCS). MCS is a nationally recognised standards organisation that gives you assurance of the quality of your product and competence of your installer. It also ensures that your installer complies with high consumer protection standards.

In line with most home improvements, you may want to obtain a quote from more than one installer.

You can find an MCS certified installer in your area here: www.mcscertified.com/find-an-installer/ (opens new window)

What will your chosen installer do?

  • Apply to Ofgem, the scheme administrator, for a grant voucher.
  • Provide your details to Ofgem. Ofgem will email you, asking you to consent to the installer applying on your behalf.
  • Complete the installation in line with industry standards and scheme requirements.
  • Redeem the voucher and receive the grant following installation and commissioning.

Eligibility

Your installer will work with you to ensure that your property and technology meet the full range of eligibility requirements. The key requirements for the grant are that:

  • Your property must be a home or small non-domestic building in England or Wales. The maximum installation capacity of 45kWth covers the vast majority of these properties.
  • Your property must have a valid energy performance certificate (opens new window) with no outstanding recommendations for loft or cavity wall insulation. This is because your heating system will work more efficiently with these insulation measures in place. For further information and details of exceptions, please speak to your installer.
  • The commissioning date of your lowcarbon heating system must be on or after 1 April 2022.
  • Biomass boilers are only eligible in properties that are both in a rural location and not connected to the gas grid. Heat pumps do not have either of these restrictions.
  • You must be fully replacing an existing fossil fuel system such as an oil or gas boiler, or an electric heating system such as storage or panel heaters. Funding will not be available for the replacement of existing low carbon heat systems.
  • New-build homes and social housing are not eligible for the Boiler Upgrade Scheme, although self-build properties are eligible.