Incentives
The UK Government is helping to make the cost of installing Heat Pump and Solar PV system as attractive as possible with two initiatives as under:
With rising demand and no guarantee of future funding, the clock is ticking to secure your grant and go green. With this significant financial support, there is no better time to make the change.
The Boiler Upgrade Scheme Grant of £7,500
With climate change and carbon emissions at the forefront of everyone’s mind, the Government has recognised that we need to change the way our homes are heated. The Boiler Upgrade Scheme is a Government initiative in England and Wales administered by Ofgem to encourage homeowners to switch from fossil fuel boilers to low carbon alternatives such as heat pumps. Other schemes and funding are available for properties in Scotland and Northern Ireland. If you live in Scotland, you may be eligible for the Home Energy Scotland Grant and Loan. If you live in Northern Ireland, the NI Sustainable Energy Programme (NISEP) may be able to provide financial support, depending on your circumstances. This is one of the ways in which the UK Government is hoping to meet the net-zero emissions target by 2050.
With rising energy prices and more importantly increasing concerns over climate change and carbon emissions, heat pumps are becoming a more attractive way to heat suitable homes than with a fossil fuel boiler.
Eligibility for BUS Grant in England & Wales
Air to Air and Hybrid heat pumps which include a fossil fuel heating system and gas condensing boilers are not eligible for the BUS grant. The heating system being replaced must be a fossil fuel system such as a gas boiler or an electric system such as night-storage heaters that did not include a heat pump. Whilst the emphasis is on upgrading existing homes, self-build homes are also eligible including small non-domestic properties, such as garages or workshops. Your property must be privately owned. The land, property and building work is owned and funded by an individual(s), rather than a company. The Government intention is to prevent large scale developers from accessing the BUS fund.
You may be eligible if:
- You live in England or Wales.
- You own your own property (whether this is a home or a small non-domestic property).
- Your property has an installation capacity that does not exceed 45 kWth, which applies to most homes.
- Your property has a valid Energy performance Certificate (EPC) typically one that has been issued within the last 10 years.
As of 8th of May 2024, the Government has dropped the insulation criteria. Prior to this date, properties needed to have 200mm+ loft insulation and cavity wall insulation where applicable. We however recommend to ensure you have adequate insulation for floor, loft and cavity walls including internal/ external wall insulation for solid walls.
The New build properties will not normally be eligible for BUS grant. The only exemption is if you are building your own home. The scheme is open to small and private landlords but it is not available for social housing. New builds will need to provide evidence that the property is privately owned and funded.
What grants are available?
The BUS supports decarbonisation of heat in buildings. It provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.
How much grant money you can receive?
BUS grant of £7,500 is available for homeowners to have Air Source Heat Pumps or Ground Source Heat Pumps and in some cases, £5,000 for biomass boilers in rural locations with populations of 10,000 people or less and in properties that are not connected to the gas grid and Water Source Heat Pumps.
The BUS grant is at a flat rate and will not differ by capacity of installation, which must not exceed 45kWth. The £450 million policy, which was initially expected to benefit just 90,000 homes, is part of a bigger funding scheme of more than £3.9bn announced in the government’s 2021 Heat and Buildings Strategy to help cut carbon emissions from homes
The BUS is installer-led so an MCS accredited installer applies for the voucher on behalf of the customer. The customer only pays net cost of the system upfront, with the £7,500 BUS grant voucher redeemable by and paid to the installer once the installation has been completed.
