Boiler Upgrade Scheme (BUS)

A UK government grant scheme providing financial support to property owners in England and Wales for replacing fossil-fuel heating systems (e.g., gas or oil boilers) with low-carbon alternatives, primarily heat pumps or biomass boilers.

Context

The BUS is a cornerstone of the UK’s strategy to achieve net zero emissions by 2050, targeting domestic heating decarbonisation. Administered by Ofgem, it launched in May 2022 and is exclusively available for existing homes and new builds in England and Wales. The scheme addresses the high upfront costs of green technologies, making them accessible for retrofits and new installations.

Objectives

• Carbon Reduction: Replaces carbon-intensive boilers with renewable systems, cutting household emissions by up to 70%.
• Market Transformation: Drives down long-term costs of heat pumps by scaling adoption, aligning with the UK’s Net Zero Strategy.
• Affordability: Covers £5,000–£7,500 of installation expenses, reducing payback periods for homeowners.

Key Features

1. Funding Structure:
   • £7,500 for air-source or ground-source heat pumps.
   • £5,000 for biomass boilers (restricted to rural, off-gas-grid properties).
   • £295 million allocated for 2025/2026, with future budgets pending Spending Review outcomes.
2. Eligibility:
   • Property Types: Privately owned homes, small businesses, and rented dwellings (excluding social housing).
   • Technical Requirements: Valid Energy Performance Certificate (EPC) with no unresolved insulation recommendations.
3. Process:
   • Installers apply for grants directly, deducting the amount from the customer’s invoice.
   • Only MCS-certified (Microgeneration Certification Scheme) installers can participate.

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