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The Boiler Upgrade Scheme – £5,000 Grant for Low-Carbon Heating

The Boiler Upgrade Scheme will allow homeowners to claim £5,000 towards the cost of replacing their fossil fuel boiler.

What is the Boiler Upgrade Scheme?

The scheme will provide UK homeowners with the opportunity to claim a £5,000 grant towards the purchase of an air source heat pump. £6,000 will be available towards the cost of ground source heat pump installations. The £450m policy will help 90,000 homes switch to low-carbon heating over a three-year period running until April 2025.

The Boiler Upgrade Scheme is part of the Government’s Heat and Buildings Strategy. It is a formal renaming of what was the Clean Heat Grant. The full report can be found on the Gov website here.

What are the aims of the Boiler Upgrade Scheme?

The primary aim of the Boiler Upgrade Scheme is to reduce the UK’s carbon emissions by encouraging homeowners to swap their gas and oil boilers for a low-carbon heat pump.

The Boiler Upgrade Scheme scheme has been designed to make the costs of installing a heat pump comparable to those of a gas boiler. By increasing uptake of low-carbon heating, the scheme aims to grow infrastructure, promote innovation and, ultimately, reduce the installation costs of heat pump systems. In a world where heat pumps offer similar installation and running costs to a gas system, why wouldn’t homeowners opt for a green heating alternative?

More than 20% of the UK’s carbon emissions come from heating properties. The Boiler Upgrade Scheme will be a key driver in the decarbonisation of UK heating and transition from gas and oil boilers by 2035. The scheme is part of the UK’s wider commitment to achieving net-zero by 2050

How will the Upgrade Scheme work?

The Boiler Upgrade Scheme will function in a similar manner to the Green Homes Grant which ran in 2021. The new funding will replace the current, retrospective subsidy offered by the Renewable Heat Incentive. The RHI expires in March 2022.

In effect, homeowners can apply for a £5,000 voucher that will offset the upfront cost of an air source heat pump, ground source heat pump or biomass installation. The customer would then cover the remaining cost of their install.

Although we await full details on the application process, homeowners will take responsibility for applying. Applications will be made before an installation takes place. Redemption of the voucher will be led by the installer and will take place shortly after the commissioning of the low-carbon heating system.

Who can claim the Scheme?

Current information states that all homeowners and landlords will be eligible to apply to the new Boiler Upgrade Scheme.

However, it looks as though properties will need to achieve minimum insulation factors on loft insulation and cavity wall insulation. Customers will need an up-to-date EPC certificate to be eligible. In addition, self-build homes will also be eligible. Hybrid systems will not.

Looking for more Information?

Find Further information on the benefits and costs of air source and ground source here.

More details on the new scheme will follow shortly.

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