The Boiler Upgrade Scheme is seeing a surge in applications, driven largely by the country’s commitment to expanding low-carbon heating solutions.
By September 2024, nearly 55,100 applications had been submitted under the scheme, with the overwhelming majority – 97% – focused on air source heat pumps.
With the government promising additional funding for the scheme until 2028 this increase in uptake shows the UK's commitment towards supporting supporting the eco-friendly heating technology.
Here’s everything you need to know about the scheme, including how much funding you can apply for, and how long the scheme will last.
Boiler Upgrade Scheme applications triple annually in September
In recent months, the Boiler Upgrade Scheme has shown steady growth, with applications up by 12% and the number of vouchers issued increasing by 8% from August to September.
The Department of Energy Security and Net Zero (DESNZ) reports 3,223 applications in September 2024 alone, almost three times the number from the same period last year.
This spike in demand underscores the scheme’s role in facilitating the transition to sustainable heating options.
Gav Murray from Centrica, the international energy services company, expressed that “more homeowners than ever are recognising the substantial benefits of upgrading to greener heating systems,” urging a collaboration across industry sectors to continue the scheme’s growth.
As Ian Rippin, CEO at the Microgeneration Certification Scheme (MCS), stated that the requirement for all Boiler Upgrade Scheme (BUS) installations to be carried out by MCS certified installers gives homeowners "confidence in the quality, safety, and performance of their heat pump installation,” partially explaining the rise in installations.
Ian Rippin
Ian is the CEO of the Microgeneration Certification Scheme (MCS), a UKAS-accredited body that certifies the quality, safety, and performance of small-scale renewable energy installations, including solar panels, biomass, wind turbines, heat pumps, and battery storage. Its mission is to enhance the quality of low-carbon technology and build consumer confidence, with a vision of bringing MCS-certified products to homes and communities across the UK.
Autumn Budget announces more funding for the Boiler Upgrade Scheme
The government also committed to supporting the Boiler Upgrade Scheme for the next two years, with increased funding for the scheme.
It has not yet been detailed how much additional funding will be given but the government did announce plans to invest in strengthening the UK’s heat pump manufacturing supply chains, ensuring the industry can meet growing demand.
Charlotte Lee, Chief Executive of the Heat Pump Association, welcomed the £3.4 billion allocated towards decarbonising heat and improving household energy efficiency over the next three years.
“Given the challenging economic climate, it’s promising to see an initial commitment,” she said, though she emphasised the need for further support to accelerate heat electrification. “We therefore await the details of Phase 2 of the Spending Review with interest,” Lee added, highlighting the importance of continued investment to meet the UK's emissions reduction targets.
Ian Rippin stated: "Following the Autumn Budget, we're pleased to see that the government recognises the growing demand for heat pumps under the BUS and is committed to increasing funding for the scheme. The BUS requires installations to be MCS certified for consumers to qualify for the £7,500 grant, giving them confidence in the quality, safety and performance of their heat pump installation."
Charlotte Lee
Charlotte, as well as being the Chief Executive of the Heat Pump Association, is also Head of External Affairs at NAPIT, a Government-approved certification body that includes the plumbing and heating sector, including heat pumps. Before this, she led on policy development and Government affairs for heat pumps and energy efficiency whilst at Ecuity Consulting and the Micropower Council.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme was announced as part of the government's Heat and Buildings Strategy in 2021 to help cut carbon emissions from homes.
Formerly known as the Clean Heat Grant, the Boiler Upgrade Scheme works similarly to the Green Homes Grant, whereby the government contributes a fixed sum towards the cost of a renewable heating system.
It operates a first-come, first-served basis to those who meet the eligibility criteria.
The scheme officially launched on 1 April 2022 (although applications opened in November 2022), and all eligible low-carbon heating systems commissioned after this date will be entitled to support under the Boiler Upgrade Scheme. The scheme opened for grant applications and payments on 23 May.
How much funding can I receive?
Grants of £7,500 will be available for the purchase of air source heat pumps and ground source heat pumps. For biomass boilers, a grant of £5,000 is available.
The funding is administered through grants, and this means that homeowners are required to pay the difference if costs exceed the grant. However, amid soaring energy price rises, switching to a lower carbon heating system could end up reducing your overall bill.
A basic ground source heat pump can cost between £2,000 to £15,000(Image credit: Kensa Heat Pumps)
How do I apply for the Boiler Upgrade Scheme?
Applicants are initially encouraged to register their interest with MCS-certified heat pump installers via the energy regulator Ofgem. A quote will then be agreed for the installation and apply for the grant on your behalf.
The value of the grant will be discounted off the price you pay.
We recommend you get quotes from more than one installer to make sure you’re getting the best value for money.
Redeeming of the voucher will be led by the installer, which will confirm proof of the installation and process the completed paperwork.
You will then need to confirm that the installer is acting on your behalf when you’re contacted by Ofgem.
What type of heat pump can I get?
The following types of heat pumps are supported on the Boiler Upgrade Scheme:
Ground source heat pumps
Water source heat pumps (which the government considers in the same tech category as GSHPs)
Air source heat pumps
Biomass boilers are supported, but only in rural areas with populations of 10,000 people or less. They aren't being offered to people in urban areas.
Your home must also meet high emissions standards to have a biomass boiler installed, which the government says is “to mitigate any negative impact on air quality.”
Your property must also have enough power to support an installation capacity of 45kWth or kilowatt thermal.
Homeowners need a valid Energy Performance Certificate (EPC) to apply to the Boiler Upgrade Scheme(Image credit: Tim Pullen)
How long do the vouchers last?
Applicants have a set validity period to ensure the vouchers are utilised in a timely manner. The validity period is:
Three months for air source heat pumps and biomass boiler vouchers
Six months for ground source heat pump vouchers.
Who can apply for a grant?
The scheme is only available in England and Wales. If you live in Scotland you can access funding to make energy-efficient home improvements through Home Energy Scotland.
Most homeowners, small landlords and private landlords in England and Wales can apply for a grant. However, all applicants must have a valid Energy Performance Certificate (EPC), typically one which has been issued in the last 10 years.
There are some caveats to ensuring your EPC is eligible, however. Firstly, you must have no outstanding recommendations for loft or cavity wall insulation. If you do, you'll need to make the recommended insulation installations before applying for the scheme. Alternatively, you can progress with your application if your property has an EPC insulation exemption.
Custom and self build homes are also eligible for the Boiler Upgrade Scheme but have a three-month validity period to complete their installations, and will not have to provide an EPC to evidence insulation eligibility.
What is excluded from the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is not available for those in social housing and new build properties.
Furthermore, you cannot replace an existing low-carbon heating system on the scheme. Only properties that are fully replacing existing fossil fuel systems (such as oil, gas or direct electric) are eligible for support.
Solar thermal is not directly supported, but solar thermal systems can be installed as part of a heat pump or biomass system that is funded on the scheme, providing the heating system can meet the full space and water heating requirements of the home.
Unlike gas boilers, heat pumps do not produce carbon when operating making them more eco-friendly(Image credit: Getty Images)
FAQs
How many vouchers have been issued under the Boiler Upgrade Scheme?
41,770 vouchers
Ofgem state that as of September 2024 41,770 vouchers have been issued under the Boiler Upgrade Scheme.
How much do heat pumps cost?
£2,000-£15,000
Basic air source heat pump costs for a small air source mono block unit are upwards of £1,600, while a top end large capacity fan unit can be around £14,000. Ground source heat pump costs can range between £2,000-£15,000, depending on size and brand. Biomass boilers can cost anywhere from £11,000 to £25,000.
The government expects to see cost reductions during the lifetime of the Boiler Upgrade Scheme, and the Heat and Buildings Strategy published in October 2021 set out plans to ensure low-carbon heating systems cost the same to buy and run as fossil fuel boilers by 2030.
What other funding is available?
If you are ineligible for funding on the Boiler Upgrade Scheme, you might be able to benefit from the Energy Company Obligation (ECO), a scheme designed to help low-income and vulnerable households make energy-efficient home improvements.
You can still apply for the Boiler Upgrade Scheme if you’ve received separate funding for energy efficiency upgrades such as insulation, doors or windows.
What did the Boiler Upgrade Scheme replace?
The Domestic Renewable Heat Incentive
The Boiler Upgrade Scheme has essentially replaced the Domestic Renewable Heat Incentive (RHI), which provided payments for the generation of renewable heat from eligible renewable heat technologies from 2014 to 2022.
The scheme ended for new applications on 31 March, and the Boiler Upgrade Scheme took its place from April 2022.
The RHI operated through tariff-based support, where payments varied between properties in accordance with the efficiency of the property.
Payments were made on a quarterly basis over a seven-year period after the system had been installed. The Boiler Upgrade Scheme has replaced this funding with a flat-rate payment.
The Boiler Upgrade Scheme represents a significant step forward in the UK’s goal to expand low-carbon heating solutions.
With record-breaking application numbers, increased government funding, and growing public awareness, the scheme continues to gain traction among homeowners.
By supporting certified installations and ensuring quality standards, the Boiler Upgrade Scheme promotes energy-efficient heating technologies, helping the UK transition to more sustainable energy use.
With additional backing expected in the coming years, the scheme is set to make green heating solutions accessible and reliable, contributing to the nation's broader net-zero ambitions.
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News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
