The Boiler Upgrade Scheme is a government initiative to support the transition from fossil fuel heating systems to low-carbon alternatives. This scheme specifically helps low-income households in the UK who are at risk of fuel poverty. Low-energy-efficient and vulnerable households can apply for grants for various energy efficiency measures.
This scheme provides partial funding for boiler replacement with low-carbon heating systems like heat pumps and biomass boilers. This scheme is also a part of the UK’s goal to reduce carbon emissions by 68% by the year 2030, and net zero emissions by 2050.
This article explores what the Boiler Upgrade Scheme measures installed under this scheme, its eligibility criteria, and everything you need to know about it.
Background of Boiler Upgrade Scheme
The Boiler Upgrade Scheme was launched in 2022 to reduce greenhouse gas emissions and achieve net-zero emissions by 2050. It focuses on sustainable and energy-efficient heating systems by utilising renewable energy sources. This scheme focuses on replacing traditional oil and gas boilers with low-carbon heating systems and enhancing energy security. This scheme also improves the living standards of vulnerable households by combating fuel poverty.
How Does Boiler Upgrade Scheme Work?
The boiler upgrade scheme provides financial support to residents of England and Wales for energy efficiency measures to help them replace their fossil fuel heating systems with renewable energy systems. The eligibility criteria, funding, and application process of the boiler upgrade scheme are explained here to help you understand how this scheme works.
Eligibility Criteria:
To be eligible for the boiler upgrade scheme you need to meet the following criteria:
- You should be an England or Wales resident.
- Your property needs to be an existing one, including the flats, houses, and buildings that use fossil fuels. (Unless they are self-built, new properties do not qualify for the scheme)
- Homeowners and private tenants can apply (only if they are residing in the property)
If you meet the above criteria, you could get a hold of the following funding:
Available Funding Under Boiler Upgrade Scheme
The BUS scheme provides funding to eligible households to offset the higher upfront costs of installing renewable energy heating systems. If you qualify for the BUS scheme, here are the funds you may receive:
- £7,500 for air source heat pump: air source heat pumps are good renewable energy sources which extract heat from the air outside, compress it, and distribute it to the building for heating and hot water. It usually costs between £8,000–£12,000 which is significantly reduced with this scheme.
- £7,500 for ground source heat pump: ground source heat pumps also use renewable energy sources to provide heat for your central heating and tap water. It extracts heat from the earth, raises its temperature by condensing it, and distributes it to the entire home for heating and hot water. It usually costs between £15,000-£30,000 which is very expensive as upfront costs. The boiler upgrade scheme helps make it affordable for qualifying households.
- £5,000 for biomass boilers: the average cost for biomass boiler installation is £8,000 which can go up to £14,000 to £19,000 for automatic fed models. The overall pricing depends on various factors, however, the provided help can reduce the upfront costs to make it possible for homeowners to install renewable energy heating systems.
These measures help homeowners save on energy bills significantly and help the government meet their goal of increasing the use of renewable energy sources and reducing carbon emissions.
Application Process for Boiler Upgrade Scheme
The application process for the boiler upgrade scheme is simple as these grants are paid directly to installers. So, what you have to do is find a reliable and experienced eco4 installer who can apply on their behalf and reduce their upfront costs for heating system installations.
Benefits of Boiler Upgrade Scheme
There are several benefits of the boiler upgrade scheme. It reduces the upfront costs of energy efficiency measures for UK households. BUS grants also contribute significantly to the UK government’s goal to reduce greenhouse gas emissions. The goal is to reduce carbon footprint by 68% by the year 2030 and achieve net-zero emissions by 2050.
However, below are other benefits of the Boiler Upgrade Scheme:
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Improves Air-Quality
Besides reducing greenhouse gas emissions, measures installed under BUS grants also improve the quality of air inside the home. Because these systems emit less carbon dioxide and condense the refrigeration cycle the quality of air inside also improves, leading to reduced respiratory-related diseases.
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Increases Property Value
Before selling or renting a property, the energy efficiency of the home is assessed to determine the value of the property. Energy efficiency is usually measured through EPC ratings from A to G. The better the energy performance certificate rating, the better the value of the property. As per Mortage Advice, the property with an EPC rating of A or B sells at 14% higher rates.
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Long-Term Energy Bill Reductions
Installing energy efficiency measures under the Boiler Upgrade Scheme can reduce energy bills as they are 300–500% energy efficient. This leads to saving £500 and £1,000 per year for heat pumps and biomass boilers respectively.
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Alleviate Fuel Poverty
National Energy Action (NEA) reports that 6.5 million households in the UK are at risk of fuel poverty. Installing renewable energy heating systems under BUS grants helps reduce fuel poverty by providing energy-efficient heating systems.
Wrapping UP
To conclude the guide, the Boiler Upgrade Scheme is one of the initiatives of the UK government to provide energy-efficient heating systems at minimum or zero costs. Boiler Upgrade Scheme and all other initiatives contribute to the national goal to reduce carbon emissions produced by residential heating.
This scheme has very simple eligibility criteria and application process, which makes it highly accessible for UK households. This scheme provides partial funding up to £7500 for different energy efficiency measures. However, if you need extra heating measures, you can contact local authorities to increase funding up to £9500 in rare situations.
This article explores various aspects of the Boiler Upgrade Scheme including its background, eligibility criteria, funding, and application process.
