Are you an installer wondering what the Boiler Upgrade Scheme means for your business?
In this article, we explain everything you need to know about the new Boiler Upgrade Scheme (BUS), and how you can prepare.
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What is the new Boiler Upgrade Scheme?
The new £450 million Boiler Upgrade Scheme (BUS), will replace the Domestic Renewable Heat Incentive (DRHI) and will be available for both domestic and small non-domestic properties in England and Wales.
The Boiler Upgrade Scheme is open to homeowners, small landlords and private landlords. To apply, a consumer must hold a valid Energy Performance Certificate (EPC) and no outstanding recommendations.
Read more: How will the DRHI closure affect installers?
Those who qualify will receive financial support to install low carbon heating systems, including heat pumps, biomass boilers, and ground source heat pumps. £5,000 will be available for the purchase of air source heat pumps and biomass boilers, and grants of £6,000 will be available for ground source heat pumps. It is important to mention that the Boiler Upgrade Scheme will provide grants for three years.
The Boiler Upgrade Scheme is a key step in the UK government's plan to decarbonise the country. Heating accounts for almost a quarter of all UK carbon emissions. The government has set targets to make new heating systems in the UK low carbon by 2035. The government has also launched a new grant scheme to encourage the installation of low carbon heating systems.
The UK government has also announced zero VAT on energy-efficient measures from April 2022 onwards.
The government plans to install 600,000 heat pumps annually. But experts are unsure if the government's budget will be enough to achieve this target.
What do you need to know?
From 11 April 2022, installers will be able to open an account for the scheme with Ofgem, the scheme administrator. On 23 May 2022, the scheme will open for grant applications and payments.
You will also have to apply for the grant on behalf of your customer. Once you receive the voucher, you will have three months to install an air source heat pump or biomass boiler and six months for a ground source heat pump. You can redeem the voucher once the installation is installation is finished.