Boiler Upgrade Scheme (BUS)
From 1st April 2022, the new Boiler Upgrade Scheme (BUS) comes into effect replacing the Renewable Heat Incentive (RHI). Under the new Boiler Upgrade Scheme the government will provide £5,000 towards the cost of a new Air Sourced Heat Pump and £6,000 towards the cost of a new Ground Sourced Heat Pump. The Energy Saving Trust says that installing an Air Sourced Heat Pump costs between £7,000 to £13,000 and a Ground Sourced Heat Pump from £24,000. Homeowners should approach certified installers, registered with the Micro-Generation Certification Scheme, to ensure quality installation and should obtain three quotes for comparison. The chosen installer then applies for the grant on the owner’s behalf. To be eligible, you must be the home owner and your home must have a valid Energy Performance Certificate (EPC). If it doesn’t, ask a local Surveyor to provide you with one. It should cost about £60. The BUS grant scheme has been extended to 31st Dec 2028.
On 20th September 2023 the Prime Minister announced a 50% increase in the grant to install new heat pumps.
Spring Statement March 2022
To help households improve energy efficiency and keep heating bills down, the government has expanded the scope of VAT relief available for energy saving materials (eg heat pumps, solar panels, cavity wall insulation and roof insulation) to ensure that households having energy saving materials installed pay 0% VAT.
Eco Plus from April 2023
According to the Times newspaper, from April 2023 middle income households may qualify for grants worth up to £1,500 towards making their houses more energy efficient. A new fund called "Eco Plus" will pay up to 75% towards the cost of loft insulation, cavity wall insulation and smart heating controls up to a maximum £1,500. Loft insulation can cost about £1,500 but could save as much as £650 a year. Cavity wall insulation can cost anything from £1,500 to £2,500 but could save you about £525 a year.
Grants for home insulation and new boilers
£1,000s in grants are available under what's known as the Energy Company Obligations (ECO) scheme. It's only available to people who get certain benefits and have an income of £16,190 or less. Many big energy providers are giving away:
- A grant toward the cost of replacing an old or broken boiler, which can cost up to £2,500
- Loft and cavity wall insulation worth up to around £1,000 combined
Energy suppliers with more than 150,000 customers are required to offer energy efficient home improvements under the ECO scheme. However, the number of measures they'll install depends on their market share, so smaller suppliers will generally have very limited availability.
Suppliers that are part of the scheme include all the big names, including British Gas, E.on, EDF Energy, Scottish Power, SSE and Ovo, as well medium-sized providers such as Avro Energy, Bulb, Octopus Energy, Shell Energy, Utility Warehouse and Utilita. For the full list, including contact details see Ofgem's website.
A new boiler typically costs £2,500 according to the Energy Saving Trust but some householders can get a grant that can slash this to just £200-£400, or even get one installed for free.
To qualify you will need to:
- You own your own home (or, in some cases, rent from a private landlord)
- Someone living at the property qualifies for certain benefits, such as pension credit, universal credit, child benefit, carer's allowance and disability living allowance. See the full list of qualifying benefits.