What is the Boiler Upgrade Scheme (BUS) and what is available to those looking to adopt renewables? Find out more about the boiler replacement scheme.
...First things first, gas boilers are not being 'banned'.
As you may already know, the UK government have legally agreed to achieve carbon neutrality by 2050 and as a result, our society is having to cut its reliance on carbon fuel in almost every area of life.
Domestic heating i.e. the way we heat our homes is one major target of government reform, as it is currently responsible for around 15% of the UK's carbon emissions.
As a result, new financial incentives are being provided by the UK government, with their latest scheme being dubbed as the "Boiler Ban Upgrade Scheme" by the media when it is officially called the "Boiler Upgrade Scheme".
Applications for the scheme originally opened on the 1st of April of 2022 and are expected to be available for around 3 years and is just one way the Heat and Buildings Strategy is going to help people transition away from gas boilers in the coming years.
Important update: on the 23rd of October 2023, the BUS grant amount increased from £5,000 to £7,500.
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So, are Gas Boilers going to be banned?
No, there is not going to be an outright ban on all gas boilers. However, the media continues to push these clickbait-style headlines, which seems to have caused a lot of confusion.
To date, the Heat and Buildings strategy has been clear that an outright gas boiler ban will only apply to new-build properties, from 2025, as part of the Future Homes Standard.
This effectively means that all new builds will be banned from being connected to the gas grid and will instead use a low-carbon heating appliance.
This new policy will not apply to existing homes and nobody will be forced to remove their existing gas boilers.
Instead, the government will continue to incentivise homeowners to adopt greener heating appliances in their homes and move away from natural gas boilers.
This is why the Heat and Buildings strategy is going to be offering the new Boiler Upgrade Scheme (BUS) from April the 1st, to make it easier and less expensive for current homes to make the transition to low-carbon technology, like heat pumps.
Important: No final decision on a gas boiler ban in new builds has been made, it's still only proposed. It's these small details that make media headlines of a "gas boiler ban" the cause of considerable confusion.
Why is it important to have an alternative to gas boilers?
One of the major causes of global warming is the production of greenhouse gases through the burning of fossil fuels, such as natural gas.
These gases cannot escape the atmosphere and instead remain trapped, causing the earth’s temperature to rise.
In response to this global climate emergency, in 2016, at the Accord on Climate Change in Paris, the UK government, together with the world’s largest economies agreed to tackle global warming by becoming carbon neutral by 2050.
As a result, traditional heating methods, which currently account for one-third of UK carbon emissions, are at the heart of the government's low-carbon agenda and change is inevitable.
Low-carbon heating methods are essential to achieving the targets; this includes technologies such as heat pumps, solar, biomass and the adoption of hydrogen boilers.
Residential combi boilers have already been the target of substantial legislation, including a ban on non-condensing boilers, rendering all new boilers at least 90% efficient, and a complete ban on gas boilers in all new build properties from 2025.
However, the fact is that the majority of UK households use gas boilers to heat their homes and the expense and practicality of replacing them all with heat pumps and solar are considered unachievable by many.
Your current boiler broke? Read our boiler replacement guide.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme, known as BUS launched on April the 1st 2022 and is administered by the energy regulator OFGEM.
The scheme will be available to homes in England and Wales, but the exact details of how the scheme will be operated and its requirements are yet to be confirmed and are said to be "in draft status".
However, at present, the BUS scheme looks to include the following:
£7,500 for air source heat pumps and biomass boilers.
£7,500 for ground source heat pumps.
£5,000 for biomass boilers.
The BUS funding available totals £450 million, which is part of a much larger £3.9 billion of new funding being announced today by the government for decarbonising heat and buildings.
Unfortunatley, right now, the average cost of a heat pump installation is ~£10,000. Therefore, a considerable amount of investment from the homeowner is still required.
What is the aim of the BUS scheme?
The BUS scheme is aimed to help the government achieve its goals of installing low-carbon heat technologies in up to 90,000 homes and buildings across England and Wales.
In addition, the scheme is predicted to help create and support set to support up to 240,000 jobs across the UK by 2035.
How do you apply for the BUS Scheme?
If you are interested in applying for the Boiler Upgrade Scheme, the application process is broken down into two distinct stages:
Before installation:
1. The first stage is to locate an MCS-accredited heat pump installer and instruct them to apply for the BUS scheme.
2. The installer will then apply for the grant and go through all required eligibility checks.
3. Ofgem will then contact the homeowner to confirm their consent.
4. Ofgem will assess the application and once satisfied and have received consent from the homeowner, the grant will be issued to the installer.
After installation:
1. The installer will complete the installation.
2. The installer will provide evidence of the installation to redeem the grant amount. Ofgem will assess the redemption voucher.
3. Ofgem will then pay the grant to the installer. Ofgem intends to make a payment to the installer for the amount associated with the redeemed voucher within a week of notification that the application has been successful.
Boiler Upgrade Scheme Eligibility Criteria:
To be approved for the Boiler Upgrade Scheme (BUS), you must meet certain criteria, which include the following:
Installers must be MCS accredited.
Air-source heat pumps, ground-source heat pumps or biomass boilers must replace a fossil-fuelled system.
There is a 45 kwh total capacity limit.
Heat pumps must have a minimum seasonal coefficient of performance of 2.8.
Biomass boilers must have an emissions certificate.
Biomass boilers can only be installed in rural areas and in properties not fuelled by mains gas.
Heat pumps and biomass boilers must meet approved standards outlined by the secretary of state.
Domestic and non-domestic buildings are eligible including custom builds.
The EPC must be valid (no longer than 10 years old) and have no recommendations to install cavity wall insulation unless exempt.
There are a few scenarios where the EPC criteria don’t apply, such as where there are exemptions. This includes the following:
Applications may be made for properties with loft or cavity wall insulation recommendations, as long as the insulation is installed before the voucher is redeemed.
Custom-built properties won’t be required to provide a valid EPC since they are subject to the latest building regulations concerning building fabric efficiency.
Is my home suitable for a heat pump?
Although a heat pump is indeed a low-carbon heating option, does it make sense to install one in your home? Will they provide the level of comfort and reliability you are looking for?
There are some key considerations before deciding as to whether installing a heat pump is a viable option:
1. How well is your home insulated?
Heat pumps have a lower flow temperature than a gas boiler and work more efficiently at generating heat at a lower temperature, therefore, a home that is well insulated is required.
2. What heating system do you have?
Heat pumps work best with underfloor heating systems and not standard radiators, however, if you are prepared to replace them with low-flow temperature radiators, such as oversized radiators it can still work well.
3. What heating system are you replacing?
The upfront costs of installing a heat pump can be astronomically high, even when factoring in a government grant. Even though there is little doubt they are better for the environment, the running costs can be more than a gas boiler, so it often only makes sense if you are replacing a more expensive system e.g., electric heating.
4. Do you have enough space for a heat pump?
It’s no secret that a ground-source heat pump needs a significant amount of space around your home to be installed, but an air-source heat pump also needs some space too.
The unit needs to be fitted to an external wall and be at least one metre from the boundary of the house.
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