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Boiler Upgrade Scheme extended by three years – BUS to run until 2028

The Government has announced that the Boiler Upgrade scheme will be extended. The scheme will now run until 2028.

The Boiler Upgrade Scheme provides homes and small businesses with capital support towards the costs of installing low-carbon heating. The BUS scheme covers air source heat pumps, ground source heat pumps and biomass boilers (in rural areas only).

A spokesperson for the Department for Energy Security and Net Zero has said: “We recognise that industry would like to have more certainty on future funding for heat pumps post-2025. The recent review into Net Zero also recommended that the BUS should be extended. Therefore, the Department of Energy Security and Net Zero is announcing that we intend to extend the scheme until 2028.”

What is the Boiler Upgrade Scheme?

In a snapshot, the Boiler Upgrade Scheme incentivises the upgrade of fossil fuel heating systems with renewable alternatives. The UK’s target is to reach net zero by 2050. A large part of this is the upgrade of traditional fossil fuel systems. Current domestic heating accounts for a large percentage of the UK’s overall carbon footprint.

While typical costs of a heat pump installation are higher than that of an oil or gas boiler the Boiler Upgrade Scheme provides an upfront grant to bridge the difference in costs. Homes and small business can claim £5,000 towards the cost of air source heat pump installations. Likewise, customers can claim £6,000 towards the cost of ground source systems.

Visit our ‘Boiler Upgrade Scheme‘ page for further info on the scheme and whether you’d be eligible. Alternatively, visit Ofgem’s website for full scheme details.

Boiler Upgrade Scheme extended: what does it mean to homeowners?

Firstly, the Government’s announcement that funding for renewable heating installations will be extended is a a great commitment to the renewable heating industry.

With the aim for the UK’s heat pump market to complete 600,000 heat pump installations by 2028. The extension to the Boiler Upgrade Scheme gives confidence to an industry in the midst of a growth period and to homeowners looking to invest in renewable heating upgrades for their homes.

In the short-term, not much changes for homeowners. Funding levels remain at the same level. The number of annual grant vouchers hasn’t increased. As such, vouchers allocation may be used up. Some may miss out on funding for their project if not applied for ahead of time.

The cost of installation a heat pump is the most stable they’ve been in a number of years. On top of that, fuel prices have soared in the last 12 months. The three year extension of the Boiler Upgrade Scheme will enable more customers to futureproof their properties by installing renewable heating.

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