Rishi Sunak announced that the government will be offering financial support to help more home-owners switch to a low-carbon heating system. 

The boiler upgrade scheme was first launched in 2022 and is open to individuals in England and Wales. It offers a grant to contribute towards the cost of replacing fossil fuel heating systems with heat pumps of biomass boilers.

Home-owners can currently claim £5,000 towards the cost of an air source heat pump and £6,000 towards the cost of a ground source heat pump. The government have now announced that the grant amount will increase by 50 per cent to £7,500 and can be used towards installing whichever heat pump suits a households needs.

How do heat pumps work?

There is an ever-growing need to find greener solutions to heat our homes, with one of the best low-carbon heating options currently available being a heat pump There are different types of heat pumps on the market, but all use electricity rather that oil or gas. The most widely adopted are air source heat pumps, which take their heat from the air. Alternatively there are ground source heat pumps, which extract heat from the ground.

Heat pump systems with a capacity if 45kW or less will be eligible for the scheme. Projects will need to be completed by an MCS approved installer and have an MCS certificate issued for the project by the MCS approved installer.

Partial Systems and Partial Heating

In order to be eligible for the Boiler Upgrade Scheme grant, the heat pump must provide all of the heating and hot water to the property. The scope of the property will be defined by the EPC. There are some situations that will not be eligible for grant support, including:

  • Heating only heat pumps (that do not provide hot water).
  • Hybrid installations (with a back-up boiler).
  • Installations that only cover part of the load defined in the EPC.

What properties are eligible for the boiler upgrade scheme?

The heat pump scheme is available to people living in England and Wales. Individuals will be eligible for the grant if they:

  • Own the property that they’re applying for. This is also applicable if it’s a business, rental property or second home
  • Have installed (or plan to install) the new heating system on or after April 1st 2022
  • Are replacing fossil fuel heating systems (oil, gas or electric)

All existing domestic and non-domestic buildings are eligible for the scheme. As with other grant schemes, there will be a requirement for any basic energy efficiency measures to have been implemented prior to the heat pump installation. Your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. 

If you are unsure if your property is suitable for a low carbon heating system, seek advice from an MCS certified installer.

Biomass Boilers

You can get a grant for a biomass boiler if all the following are true:

  • Your property is off the gas grid
  • Your property is in a rural location (check the Ofgem guidance for property owners)
  • Your boiler has an emissions certificate showing that polluting emissions are kept to a minimum

Properties not eligible

You cannot get a grant for:

  • Social housing
  • Most new build properties
  • A property that already received funding/support for a heat pump/biomass boiler

Self build properties

Self build properties are eligible if:

  • You or the regional owner built it yourself or paid a builder to build it
  • It’s never been owned by a business or organisation

You’ll need to provide your installer with prod that your property is a self build.

New build properties

New build properties that are still being built are not eligible. If you move into a finished new build with a fossil fuel boiler, you may be eligible to get a grant for a heat pump under the scheme.

Timeframe for the increase 

It is understood that changes to the grant scheme will apply from Monday 3rd October, however this is subject to official confirmation from Ofgem. It is worth taking the following points into consideration: 

  • Those who have previously redeemed a voucher won’t be eligible for the grant increase
  • Anyone with a live voucher application can revoke it and reapply after Monday 23rd October in order to get the increased grant

The Boiler Upgrade Scheme is an essential pillar of the Government’s commitment to reach “net zero” carbon emissions by 2025. This scheme is due to end in 2028, with no current plans on what to expect after. 

How can I claim the boiler upgrade grant?

You can apply for the Boiler Upgrade Scheme by following the link below: 

https://www.gov.uk/apply-boiler-upgrade-scheme/how-to-apply

You can get the ball rolling by following the steps below:

  1. Contact suitable MCS certified installers to get quotes for work
  2. Confirm if you’re eligible (your installer will tell you)
  3. Agree a quote with your chosen installer

The installer will then apply on your behalf on the Ofgem website. The value of the grant will be deducted from the amount paid for installation.

Ofgem will then contact you to confirm the installer is acting on your behalf, and may arrange a visit to your property to check the installation. MCS may ask contact you to carry out their own checks.