Everything You Need to Know About the Boiler Upgrade Scheme

The UK government is accelerating the transition to low-carbon heating by offering financial support through the Boiler Upgrade Scheme (BUS). Designed to help homeowners and businesses replace traditional fossil fuel boilers with air source and ground source heat pumps, this scheme provides grants of up to £7,500, making renewable heating more accessible and affordable.

But how does the scheme work, who is eligible, and is it worth applying for? This guide breaks down everything you need to know about the Boiler Upgrade Scheme and how it can help you save on energy costs while reducing your carbon footprint.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government grant designed to encourage the adoption of low-carbon heating solutions in homes and businesses. Launched in 2022 and running until 2028, the scheme replaces traditional gas and oil boilers with renewable alternatives, supporting the UK’s commitment to achieving net-zero emissions by 2050.

Under this scheme, eligible applicants can receive:

• £7,500 towards an air source heat pump installation
• £7,500 towards a ground source heat pump installation
• £5,000 towards a biomass boiler (only for rural areas without gas access)

The grant directly reduces upfront installation costs, making it easier for property owners to switch to sustainable heating.

Who is Eligible for the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is available to homeowners, landlords, and small business owners in England and Wales. To qualify, properties must meet the following criteria:

• Own the property (home or small commercial building)
• Have an existing fossil fuel heating system (gas, oil, or direct electric heating) or an eligible self-build property
• Have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations
• Be replacing a fossil fuel boiler with a heat pump or biomass boiler

Unfortunately, properties that already use low-carbon heating (e.g., an existing heat pump) do not qualify for the grant.

How Much Do Heat Pumps Cost with the Boiler Upgrade Scheme?

The cost of installing an air source or ground source heat pump varies based on system size, efficiency, and installation complexity. On average:

• Air source heat pumps cost between £8,000 and £14,000 before the grant, meaning a household could pay as little as £500 to £6,500 after receiving the £7,500 grant.
• Ground source heat pumps cost between £18,000 and £35,000, bringing post-grant costs down to £10,500 to £27,500.

While the upfront costs may seem high, heat pumps are significantly more efficient than gas boilers, leading to long-term savings on energy bills.

How to Apply for the Boiler Upgrade Scheme

The application process for the Boiler Upgrade Scheme is handled by your installer, making it straightforward for homeowners and businesses.

Step-by-Step Application Process

1. Find an MCS-certified installer – Homeowners must work with an accredited heat pump installer (like ESS Group) who can apply for the grant on their behalf.
2. Property assessment – The installer will assess your home or business to confirm eligibility and recommend the best system.
3. Grant application – The installer submits the application, and once approved, the grant is automatically deducted from the installation cost.
4. Installation and system commissioning – Once installed, the heat pump or biomass boiler is connected, tested, and ready to use.

Why Switch to a Heat Pump with the Boiler Upgrade Scheme?

Lower Heating Bills

Heat pumps are 3 to 4 times more efficient than traditional gas boilers, meaning they generate more heat for every unit of electricity used. Over time, this translates into lower energy bills, especially as fossil fuel prices continue to rise.

Long-Term Energy Security

Unlike gas boilers, which rely on fluctuating fossil fuel prices, heat pumps use electricity, which can be supplemented by renewable sources like solar energy. This protects homeowners and businesses from future energy price spikes.

Increased Property Value

Properties with energy-efficient heating systems are more attractive to buyers and may sell at a premium compared to homes with outdated gas or oil boilers.

Lower Carbon Emissions

Switching to a heat pump can reduce a home’s carbon footprint by up to 60%, contributing to the UK’s net-zero goals.

Boiler Upgrade Scheme for Businesses: What SMEs Need to Know

The Boiler Upgrade Scheme is not just for homeowners – small businesses can also benefit by replacing inefficient heating systems with low-carbon alternatives.

How SMEs Can Benefit

• Lower operational energy costs – Businesses can cut heating expenses by switching to a more efficient system.
• Government incentives for sustainability – Companies committed to reducing emissions may benefit from additional tax breaks and funding opportunities.
• Better corporate social responsibility (CSR) – Consumers and investors are increasingly prioritising eco-conscious businesses.

If your business operates in a commercial property with high heating costs, switching to a heat pump could provide significant long-term savings.

Why Choose ESS Group for Your Heat Pump Installation?

Applying for the Boiler Upgrade Scheme and installing a low-carbon heating system requires expert guidance. ESS Group provides tailored solutions for homeowners, landlords, and businesses, ensuring seamless installations and maximum energy savings.

ESS Group Services Include:

• MCS-certified heat pump installations eligible for the Boiler Upgrade Scheme.
• Full property assessments to determine the best heating solution.
• Expert advice on energy efficiency improvements.
• Ongoing maintenance and support to keep your system running efficiently.

By working with ESS Group, you can reduce installation costs, lower energy bills, and future-proof your property with sustainable heating.

Get in touch today to see how the Boiler Upgrade Scheme can help you make the switch to a more efficient heating system.

Final Thoughts

The Boiler Upgrade Scheme makes air source and ground source heat pumps more affordable than ever, helping homeowners and businesses reduce heating costs and carbon emissions.

With grants of up to £7,500 available, switching to low-carbon heating has never been easier. If you’re considering making the change, now is the perfect time to take advantage of this government-backed incentive.

Contact ESS Group today to start your journey towards a greener, more cost-effective heating solution.