Who remembers the Renewable Heat Incentive?
Feels like just yesterday, right?
If you’re still an existing RHI participant, don’t worry, your payments will continue for the rest of your seven-year term. For everyone else, the RHI officially closed to new applicants in 2022 and was replaced by today’s flagship low-carbon heating support programme: the Boiler Upgrade Scheme.
This scheme focuses on simple, upfront grants to help households switch from fossil-fuel heating to cleaner, greener alternatives.
The Boiler Upgrade Scheme (BUS)
The Boiler upgrade Scheme (BUS) is a UK Government Scheme that helps homeowners in England and Wales switch from old, fossil-fuel heating systems to cleaner, low-carbon alternatives, mainly air-source heat pumps, ground-source heat pumps and in limited cases biomass boilers. Most homes in the UK are heated with gas or oil boilers, which release carbon emissions.
Heat pumps, on the other hand, use electricity and are far more efficient and cleaner for the environment. They operate like a fridge, but in reverse; they take hot air from an outside source, which can be the ground, air and even a water source, then transfer the heat inside homes. Heat pumps cost more to install upfront, but the Boiler Upgrade Scheme helps to bridge the cost gap.
How Much Money Can You Get?
The government will offer £7,500 for an air-source heat pump, £7,500 for a ground-source heat pump and £5,000 for a biomass boiler (only in rural/off-gas areas).
This amount will be taken off the price automatically.
How Does The Application Work?
You might be relieved to know that you don’t have to apply directly; your installer will handle the whole process for you. This is because BUS is an “installer-led” scheme, designed to simplify what would otherwise be a complicated application. It reduces your upfront costs, ensures everything is submitted correctly by certified professionals, and saves you the hassle of paperwork or large initial payments. All you really need to do is choose your installer.
They will:
- Check if your home is eligible.
- Apply for the grant on your behalf.
- Deduct the money from your final bill.
Who Can Get The Grant?
If you’re a homeowner in England or Wales, you will more than likely qualify.
Basic requirements:
- You must own the property (house or flat)
- The building needs a valid EPC (Energy Performance Certificate)
- No outstanding insulation recommendations on the EPC (like “add loft insulation”)
- The new system must replace an existing fossil fuel boiler (gas, oil, LPG, etc.)
Your old boiler does need to be broken for this scheme.
What’s Different From The Old Renewable Heat Incentive (RHI)?
The main difference between RHI and BUS is the payment structure. The RHI paid households in small instalments over seven years and the Boiler Upgrade Scheme will give you one big upfront discount instead, therefore making it much simpler to apply due to there being no upfront cost barrier.
Does It Save Money Long-term?
The reality is that heat pumps genuinely will cost more to run than gas in poorly insulated homes. This is because the heat will escape rapidly through uninsulated walls, roofs and windows. This will force the pump to work much harder and longer to maintain warmth, consuming more electricity than it would in a sealed, efficient home.
We’d be lying if we said a heat pump will save everyone money; it all depends on how well-insulated the home is. When heat escapes quickly through uninsulated walls, roofs and windows, the heat pump has to work much harder and for much longer to keep the house warm. The extra effort means it uses more electricity than it would in a well-insulated and energy-efficient home.
The Boiler Upgrade Scheme is a great initiative and can save homeowners a lot of money in the long run, if the property is already well insulated. However, if your home isn’t well insulated, it’s usually best to prioritise improving insulation first. This helps you get the maximum benefit from a heat pump and keeps running costs as low as possible.
The world is moving in the right direction, prioritising greener energy so our children can breathe cleaner air and live more sustainably. The heat pump is just the beginning of the changes we, as citizens who care about future generations, need to implement.
If you enjoyed this, explore our other blogs for more ways to make a difference:
