Boiler Upgrade Scheme (BUS)

Information about the new Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) will provide 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 will be open to properties located in England and Wales. It will run from 2022 to 2025.

Consumers will be able to get:

  • £5,000 off the cost and installation of an air source heat pump
  • £5,000 off the cost and installation of a biomass boiler
  • £6,000 off the cost and installation of a ground source heat pump

Heating systems commissioned on or after 1 April 2022 date will be entitled to support under the scheme. (Commissioning is the completion of installation and set-up of the system.) Installers will be able to open an account for the BUS with Ofgem, the scheme administrator, from 11 April 2022. The BUS will open for grant applications and payments on 23 May 2022.

Renewable heating systems in the following homes and small non-domestic properties will be eligible for support through the BUS:

  • Those where the proposed installation capacity is 45kWth or less and where the system will provide for all the space heating and hot water demands.
  • Those where existing fossil fuel systems such as oil, gas or direct electricity will be fully replaced.
  • Those situated on or off the gas grid for heat pumps but off the gas grid only for biomass boilers.
  • Those which are owner-occupied or owned by a private landlord.
  • Those in custom-build new build properties only.
  • Those in a property with a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation.
  • Those with a commissioning date on or after 1st April 2022 only.
  • Those which comply with the approved standards published here only.

Renewable heating systems in the following homes and small non-domestic properties will not be eligible for support through the BUS:

  • Those in new builds unless they are custom-build properties.
  • Those in and social housing.
  • Hybrid systems (any combination of a boiler and electric heat pump, whether installed as a split or integrated system and whether on or off the gas grid).  
  • Replacement low carbon heat systems.
  • Those where outstanding EPC recommendations for loft or cavity wall insulation cannot be completed before commissioning.
  • Those which do not comply with all the conditions set out in the above section.

RECC Guidance and Model Documents

Following the closure of the Domestic RHI to new applicants RECC has updated all its model documents specific to heat pumps, biomass boilers and solar thermal systems. We are also updating the accompanying guidance. You can find these documents here (you will have to log in to access the Members’ Area):
https://www.recc.org.uk/member/documents

Fast track for systems commissioned before 23 May

Where an installation has a commissioning date between 1 April 2022 and 22 May 2022, installers will be able to submit both voucher and redemption applications for an installation at the same time. This will be a temporary and bespoke approach to alleviate immediate industry pressures and will only apply to applications submitted between 23 May and 31 May 2022. Ofgem will still require property owners to confirm that they have consented to the application being made on their behalf, as per the scheme regulations, but anticipate that this short-term approach will help processing times for installs subject to cashflow pressures. Ofgem will also have staff ready to process these applications and can mobilise further staff to respond to higher volumes of applications being submitted. Processing times are subject to the volumes and quality of applications Ofgem receive as well as property owners confirming their consent. Ofgem are intending to provide further information on the temporary approach shortly.

Other useful resources

You can find more information about the BUS and create an installer account at the links below:

Ofgem:
https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus
https://www.ofgem.gov.uk/publications/boiler-upgrade-scheme-guidance-property-owners
https://www.ofgem.gov.uk/publications/bus-account-creation-guidance
https://www.ofgem.gov.uk/publications/boiler-upgrade-scheme-installer-account-form

BEIS:
https://www.gov.uk/guidance/check-if-you-may-be-eligible-for-the-boiler-upgrade-scheme-from-april-2022
https://www.legislation.gov.uk/ukdsi/2022/9780348232349/contents

Energy Saving Trust:
https://energysavingtrust.org.uk/grants-and-loans/boiler-upgrade-scheme/


If you have any queries about the BUS please address them to BEIS at: boilerupgradescheme@beis.gov.uk