The Boiler Upgrade Scheme (BUS) provides upfront capital grants to support the installation of heat pumps, and in some circumstances biomass boilers, in homes and some non-domestic buildings. The BUS is open to properties located in England and Wales. It will run from 2022 to 2028.
Consumers can get:
Heating systems commissioned on or after 1 April 2022 date are entitled to support under the scheme. (Commissioning is the completion of installation and set-up of the system.) Installers must first open an account for the BUS with Ofgem, the scheme administrator, before submitting grant applications.
Renewable heating systems in the following homes and small non-domestic properties are eligible for support through the BUS:
Renewable heating systems in the following homes and small non-domestic properties are not eligible for support through the BUS:
Don't forget that the VAT rate for heat pumps is zero
In the Spring Statement in March 2022, the Chancellor of the Exchequer agreed to reduce to zero the VAT rate for installing those measures on the Energy Savings Materials List from 1 April 2022, until 31 Mach 2027. The List contains renewable energy generating technologies including solar PV and thermal panels, insulation measures, air-, ground- and water-source heat pumps, biomass boilers and wind and water turbines.
You can find more information about this here:
RECC Guidance and Model Documents
Following the closure of the Domestic RHI to new applicants RECC has updated all its model documents and guidance specific to heat pumps, biomass boilers and solar thermal systems. These documents explain how to account for the BUS grant in invoices. You can find these documents here (you will have to log in to access the Members’ Area):
The heat pump model proposal suggests two ways for installers to account for the BUS grant in their invoices. One is by deducting the appropriate percentage of the total cost accounted for by the grant at all stages of the payment terms. The other is by deducting the total value of the grant from the final invoice issued after installation and commissioning of the system. By using the second option installers can guard against unforeseen events (such as the annual allocation of funds running out or early closure of the scheme) occurring between the point of contract and final payment and voucher redemption.
Both the options set out above are compliant with the Code. Installers must decide which option to use and explain this clearly in their proposal letter before signing the contract. Installers may also add a sentence to the proposal letter and to the contract stating that, if the BUS grant is not available for reasons clearly beyond their control (such as the two scenarios outlined above) the consumer will be liable for the total amount of the grant. Consumers must be made aware of this clearly before signing the contract.
Other useful resources
You can find more information about the BUS and create an installer account at the links below:
Energy Saving Trust:
If you have any queries about the BUS please address them to BEIS at: email@example.com