The government’s £450m Boiler Upgrade Scheme (BUS) will start providing grants of up to £6,000 towards the cost of installing heat pumps. The funding will be available for either domestic or small non-domestic properties.
the main focus of the incentive
The main focus of the incentive, which is scheduled to run until 2025, is to help reduce the upfront cost of installing low carbon heat in the existing housing stock in both England and Wales.
Newly built properties and social housing are not eligible for receiving BUS funds, with hybrid heat pump systems also not included under the remit of the incentive, according to the latest government guidance.
MCS accreted installer
The Electrify Heat campaign group has welcomed the launch of the BUS application process
Under the terms of the scheme, an MCS accreted installer chosen to fit a new heat pump is required to apply for the grant fund that will then be deducted from the final installation price of the system for homeowners. An initial target of 30,000 installations has been set for the first year of the scheme.
The Electrify Heat campaign group, which is calling for the widespread electrification of heat in the UK, has welcomed the launch of the BUS application process as an important step to scale up the installation of low carbon heating.
invest in lower carbon heat systems
Several trade organizations within the group, which includes heat pump specialists and utility companies, have called for further incentives to be introduced by the government to increase the attractiveness of heat pumps to homeowners.
Laura Bishop, Chair of the Ground Source Heat Pump Association (GSHPA), said that the BUS was one of several recent announcements from the government that was expected to boost consumer confidence to invest in lower carbon heat systems. She said this included the recent announcement that the Treasury would stop charging VAT on heat pumps and insulation materials.
ground source heat pumps
GSHPA is urging to increase funding significantly for the BUS to make a more important contribution"
Ms. Bishop said more still needed to be done to increase demand for ground source heat pumps and low carbon systems. She said, “We’d like to see more government ambition for the scheme. GSHPA is urging the government to increase funding significantly for the BUS so that it can make a more important contribution to domestic heat pump uptake and the transition to low carbon heat.”
Charles Wood, deputy director of policy looking at heat for the Energy UK trade group, said it was vital to support end users to switch to lower carbon and more efficient forms of heat as they face surging bills as a result of global gas prices.
energy efficiency
Mr. Wood argued that more needed to be done, alongside launching the BUS, to improve the energy efficiency of homes to help curb heating demand in properties.
He said, “A grant scheme is only one piece of the puzzle. Making our homes more energy efficient will ensure they are ready for low-carbon heating and delayed regulations that support this initiative must be released as soon as possible.”
heat pump adoption
“Furthermore, continuing the national smart meter roll-out will help households save on energy usage and enable smarter tariffs.”
A recent survey of 500 people by DG Cities found that a majority of respondents did not believe grants provided by the BUS would be sufficient to drastically encourage heat pump adoption. 60 percent of those surveyed for the study said they would not be using the grant.
